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Marshall Wace Challenges Citadel's Subpoena in Shatz Case

Bloomberg Markets •
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Marshall Wace, a UK hedge fund firm, said that Citadel was demanding too much information as part of an ongoing legal battle over the British company’s recruitment of a former Citadel portfolio manager as its global credit head. The UK firm said in a New York court filing Tuesday that Citadel, a rival hedge fund, continues to insist on “overbroad and burdensome searches” that contain “highly common terms” and “refused to meaningfully engage in any good-faith discussion to limit its palpably improper and overbroad proposed searches.”

A New York judge ruled in June that Citadel could subpoena records from Marshall Wace as part of a arbitration dispute with the former employee, Daniel Shatz, who claims he was denied deferred compensation. Citadel claims Shatz stole confidential information in preparation for his 2024 move to Marshall Wace. The filing comes after Citadel accused Marshall Wace earlier this month of failing to adhere to the court order, and asked the judge to rule that Marshall Wace executives Anthony Clake and Alan Hofmeyr are covered by subpoenas.

“It’s time for Marshall Wace to turn over the emails,” a Citadel spokesperson said in a statement. “The panel has been clear it expects them to be produced.” Marshall Wace in its filing Tuesday said that its document production should be complete soon and will “fully comply” with the court’s order. The dispute is one of several that have recently erupted as hedge funds scramble for top talent.