Millennium Management, considered one of the world’s largest hedge fund firms, was sued on Friday by rival Jane Street Group, which accused it of stealing a useful in-house trading strategy after two traders defected.
Jane Street said the traders Douglas Schadewald and Daniel Spottiswood had been “intimately” involved in developing the strategy before resigning individually to affix Millennium in February.
It said the theft became apparent when its cash in on the strategy plunged greater than 50% almost immediately after Schadewald left. Jane Street said it built the trading technique to make the most of inefficient markets.
Millennium manages greater than $63 billion of assets and is led by billionaire Izzy Englander, above. REUTERS
The lawsuit seeks compensatory and punitive damages for causing “severe and irreparable” harm” through the “egregious misappropriation” of closely guarded trade secrets, which allegedly violated the traders’ confidentiality agreements.
Millennium manages greater than $63 billion of assets and is led by Israel Englander, often known as Izzy, who’s price $12.4 billion based on Forbes magazine.
The Recent York-based firm didn’t immediately reply to requests for comment. Schadewald and Spottiswood are also defendants. Jane Street relies in Recent York.
Lawsuits alleging trade secret theft are common within the financial services industry, though Jane Street said Friday’s lawsuit was its first against a former worker.
The firm employs greater than 2,600 people, about half as many as Millennium.
Lawsuits alleging trade secret theft are common within the financial services industry, though Jane Street said Friday’s lawsuit was its first against a former worker. REUTERS
Former employees have included Sam Bankman-Fried, the now-convicted founding father of the bankrupt FTX cryptocurrency exchange.
Englander founded Millennium in 1989 with about $35 million, Forbes said.
The case is Jane Street Group LLC v Millennium Management LLC et al, U.S. District Court, Southern District of Recent York, No. 24-02783.
