A former Wall Street star banished from a top hedge fund in a sexual harassment allegation at the start of the #MeToo movement won Record defamation award According to a submission by the Arbitrators’ Committee on Thursday, to his former company DE Shaw and four senior executives at that company.
The Committee of Arbitrators, in the position of financial industry regulator, has awarded former DE Shaw partner Daniel Michaelow $ 52 million in a dispute that lasted nearly four years. In their decision, the arbitrator said he concluded that Mr. Mihauf had not committed “sexual misconduct.”
This award is considered to be the largest defamation case supervised by FINRA in resolving employment disputes between a brokerage firm and its employees.
Unlike proceedings, the settlement of the FINRA arbitration case is binding and cannot be appealed.
“It is possible to defeat power, arrogance, and lie with tenacity, humility, and truth,” Mihauf said in a statement, denying sexual harassment allegations from the beginning. He added that the company and its leaders defended themselves as “a model of social activists and corporate governance at my expense.”
In a statement, Mihauf’s lawyer, Tom Claire, who has represented others accused of sexual harassment, said the award “abuses important cultural movements to weaponize and prioritize profits over truth. I will send you a strong message about the actions of the DE show. ” It was morally and legally wrong. “
“I was disappointed with the outcome of the arbitration, and I support Mr. Mihauf’s decision to end his employment at the company in 2018,” a DE Shaw spokesman said in a statement.
Prior to his resignation in March 2018, Mihauf was one of DE Shaw’s Star Money Managers. According to the company, Mihauf was fired, but sources close to Mihauf said the former money manager voluntarily resigned.
Immediately after Mr. Mihauf’s departure The story emerged He was accused of sexual harassment at the company. DE Shaw then issued a statement that an internal investigation revealed that Mr. Mihauf had “a serious breach of our standards and values.”
In September 2018, Mihauf filed a defamation claim against the company for $ 600 million in damages.
After graduating from Harvard University, Mihauf joined the DE Show in 2004.He quickly stood up, became a partner at the age of 29 in 2011, and reportedly Paid $ 40 million in compensation That year. His last job at DE Shaw was co-manager of the discretionary macro strategy of a company that had $ 6 billion in assets at the time.
DE Shaw is one of the highest-selling ones. And secret, Wall Street Hedge Fund, manages over $ 50 billion in assets. It is one of a group of hedge funds, including Renaissance Technologies, and is a pioneer in managing large investment portfolios using advanced quantitative strategies. Prior to joining the Obama administration as the best economic adviser, Larry Summers worked part-time at DE Shaw, earning $ 5.2 million a year. The company also became famous as the place where Jeff Bezos worked while hatching Amazon’s ideas.
Along with the company, four members of DE Shaw’s executive committee have been appointed as joint and several liability officers, including Max Stone, Julius Gaudio, Eric Wepsic, and Eddie Fishman. All four declined to comment on this article.
