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DE Shaw, executives have to pay $ 52 million to former money manager, arbitration panel says

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New York — Arbitrator The association ruled that prominent US hedge fund DE Shaw and four senior executives would have to pay $ 52.1 million to a former top money manager who accused the company of defamation.

Dan Mikarou, 39, was fired by the DE Show in 2018. At that time, his resignation was due to "a serious violation of our standards and values."

However, in a ruling issued Wednesday, the Financial Industry Regulatory Authority's (FINRA) arbitration committee found that DE Shaw and his executives were responsible for defamation, especially Michael. I discovered that I did not commit sexual misconduct.

Executives are Eddie Fishman, Julius Gaudio, Maxstone, Eric Wepsis and are on the six executive committees of the DE Show.

"We are disappointed with the outcome of the arbitration and support the 2018 decision to terminate Mr. Mihauf's employment," DE Shaw said on behalf of all defendants.

Mihauf denied cheating. His departure came shortly after the start of the #MeToo movement, where hundreds of rich and powerful men were accused of sexual misconduct.

"I'm excited to get my life and career done," Mihauf said in an interview, and hedge funds "have fiduciary security to tell investors the truth." I added.

After graduating from Harvard University, Mihauf joined DE Shaw in 2004 and became a partner in 2011.

He assisted in implementing the company's discretionary macro strategy and oversaw about $ 6. When he left, he had a billion capital.

The initial arbitration claim sought $ 600 million for defamation.

DE Shaw is one of Wall Street's largest hedge funds and is also known for its quantitative investment.

FINRA arbitral awards are generally not appealable. There are limited exceptions to rewards contaminated by fraud, illegal activity, arbitrator prejudice, or completely unreasonable rewards.

Mihauf's lawyer, Tom Claire, said in his statement: .. (Report by Jonathan Stempel, edited by Richard Pullin and David Gregorio)