You guys remember Daniel Michalow, right?
He's the former DE Shaw managing director who openly yearned for a colleague to call "Sugar Tits" and then took his firing in stride by writing David Shaw a letter that basically alleged DE Shaw to be a non-stop, booze and drug-fueled nerd fuckfest that sometimes manages assets.
Yeah, that Daniel Michalow.
Well, there's an update. According to Business Insider, Michalow is not looking to just set let the bridges he has burned lead his way to a settlement package. He's looking to make a real stink here.
Daniel Michalow, a former senior portfolio manager in the firm's discretionary macro group, plans to take legal action against his former employer next month, a person familiar with the matter said. Michalow plans to file a statement of claim in arbitration next month with the Financial Industry Regulatory Authority. Michalow plans to claim that the New York hedge fund, in its response to Michalow's termination, defamed him in internal and external communications and to the media.
Oh, yeah, tattling to FINRA. Now we got a fight on our hands...
Michalow now alleges that D.E. Shaw should have stated publicly that he was not fired for misconduct, according to the person familiar with the matter. Michalow also alleges that D.E. Shaw should not have said that he violated the firm's values. He plans to make these claims in a FINRA action.
"From day 1, my primary goal has been for David Shaw and his team to tell the truth and they have not," Michalow alleges in a statement to Business Insider.
While we assume he means that DE Shaw wasn't clear about his behavior, we are also choosing to assume that he wants the firm to provide clarity about all the special people at DE Shaw banging the hell out of each other after snorting Molly in the morning meeting. And we definitely want details about any female Wharton MBAs bending a first-year male poet turned quant over a Bloomberg terminal and just going...to...town on him.
And maybe we'll hear about all of it, because apparently Daniel Michalow will not be paid to go away...
D.E Shaw offered Michalow more than $10 million in compensation after his separation under conditions that he not sue the firm, the person close to the matter said. D.E. Shaw continued to offer that figure after Michalow published his letter to David Shaw on May 7, the person added. Michalow has rejected the offer.
We're just gonna make some popcorn and get ready for this one to develop.