An arbitration panel has awarded $52.1 million to a former fund manager for D.E. Shaw & Co. over his defamation complaint, according to AdvisorHub.
The Financial Industry Regulatory Authority arbitrators ruled in favor of Daniel Michalow, who was fired by D.E. Shaw in 2018. At the time, the company said it had conducted an internal investigation after employees accused Michalow of abusive and offensive conduct. The firm concluded that Michalow had committed “gross violations of our standards and values.”
But the FINRA arbitrators found that Michalow did not commit sexual misconduct and awarded him compensatory damages considered one of the largest awards by FINRA in a defamation case. Michalow had been seeking a total of $600 million from his former firm and four of its senior executives, claiming defamation, gender discrimination, violation of New York labor law, breach of contract; and unjust enrichment.
A spokesperson for D.E. Shaw said the firm was disappointed in the ruling, and stands by its decision to terminate Michalow’s employment.
Michalow called the award “appropriate” and said that he had learned a great deal from his experience.
Those who choose to work in the financial services industry face a range of complex rules and regulations. If you are under investigation by your firm, terminated for cause or considering voluntarily leaving your firm, it is imperative that you hire counsel to advise you properly and protect your record. The attorneys at Lewitas Hyman have years of experience advising financial professionals on various types of employment issues, including defamation and slander. For more information about our financial services employment practice, please contact us at (888) 655 6002 or through our online contact form.