A former senior managing director at DE Shaw brought a high-profile defamation claim against the hedge fund and four members of its executive committee, alleging that the firm falsely accused him of sexual misconduct in connection with his 2018 departure. The dispute unfolded against the backdrop of the #MeToo movement, after the firm publicly stated that an internal investigation had uncovered “gross violations” of company standards, which were allegations the claimant consistently denied.
Following a 25-day hearing before a FINRA arbitration panel, the arbitrators found that the executive had not engaged in sexual misconduct and held DE Shaw and four executives liable for defamation. The panel awarded $52 million in damages, the largest award issued by FINRA in an intra-industry dispute in recent years.
DOAR was retained to support the claimant, Daniel Michalow, with research and trial strategy consulting services in preparation for the arbitration. Working closely with counsel, DOAR assisted in testing and refining key case themes contributing to a clear and cohesive case before the panel in this closely watched industry matter.
