Harris St. Laurent & Wechsler Wins Record $52M FINRA Arbitration Award Against D.E. Shaw

July 1, 2022

Harris St. Laurent & Wechsler LLP has won a record-setting $52 million arbitration award by the Financial Industry Regulatory Authority (FINRA) for client Dan Michalow, the former co-head of global hedge fund D.E. Shaw's Macro Group.

The FINRA panel explicitly found that D.E. Shaw had defamed Michalow and that Michalow did not commit sexual misconduct. D.E. Shaw and four members of its executive committee were found jointly and severally liable. 

According to FINRA databases, the damage award is the sixth-largest overall award handed down to an employee by FINRA, the largest ever awarded by FINRA for defamation, and the largest ever to an individual employee.

Harris St. Laurent & Wechsler founding partner Jonathan Harris has now won two of the six largest-ever FINRA awards, cementing the firm’s place as the nation’s premier law firm for FINRA disputes.   

During the 25-day-long hearing, Harris put Michalow on the stand for five days on direct and examined 9 D.E. Shaw employees and former employees, including two members of D.E. Shaw's executive committee, both of whom were found liable. 

Harris St. Laurent & Wechsler represented Michalow alongside outstanding co-counsel Clare Locke LLP and Wallison & Wallison LLP.

“We’re extremely pleased with this outcome, and happy for Dan” said Harris. "There is nothing like winning. And, as always, it takes a team to win."

The multi-disciplinary Harris St. Laurent & Wechsler trial team included associate Marilyn Yuan and Dr. Monica Delgado, who holds a doctorate in clinical forensic pyschology. Firm partner Yonaton Aronoff contributed materially to all phases of the case, and attorneys Julie Withers and Vanessa Biondo, graphic artist Ursula Dilley, and staff members Leon Dominguez-Lukic and Kim Geissler all made critical contributions.