Arbitrator Awards $52 Million to Former D.E. Shaw Partner
A former partner at hedge-fund giant D.E. Shaw Group was awarded $52 million by an industry arbitration panel, which determined that the firm and four of its top executives defamed him by suggesting his departure from the hedge fund was related to sexual misconduct.
In 2018, Daniel Michalow filed a complaint with the Financial Industry Regulatory Authority seeking $600 million in lost wages and other damages, as well as a “corrective statement” from D.E. Shaw. Mr. Michalow didn’t receive the statement from the firm, but the award is a record for a Finra case in which a member of the financial services industry filed a complaint against his employer.