Millennium Management Sued by Jane Street Group for Allegedly Stealing Trading Strategy

Millennium Management, one of the world’s largest hedge fund firms, is facing a lawsuit from rival Jane Street Group over allegations of stealing a valuable in-house trading strategy. The lawsuit claims that two former traders, Douglas Schadewald and Daniel Spottiswood, who were involved in developing the strategy, took it with them when they left to join Millennium.

According to Jane Street, the theft became apparent when their profits from the strategy dropped significantly after Schadewald’s departure. The firm alleges that Millennium misappropriated closely guarded trade secrets, violating the traders’ confidentiality agreements. The lawsuit seeks compensatory and punitive damages for the harm caused by the alleged theft.

Millennium Management, led by billionaire Israel Englander, manages over $63 billion in assets. The firm has not yet responded to the allegations. Lawsuits over trade secret theft are common in the financial services industry, but this is reportedly Jane Street’s first lawsuit against a former employee.

Former employees of financial firms have been involved in similar cases, including Sam Bankman-Fried, the founder of the bankrupt FTX cryptocurrency exchange. Englander founded Millennium in 1989 with just $35 million. The case is ongoing in the U.S. District Court, Southern District of New York.

This legal battle between two major players in the hedge fund industry is sure to draw attention and raise questions about the protection of intellectual property and trade secrets in the financial world.