Citadel escalates legal pressure on Marshall Wace over hiring dispute

Citadel’s latest court filing specifically names Anthony Clarke, a partner and TOPS fund manager, and Alpha Plus co-portfolio manager Alan Hofmeyr as key figures whose correspondence must be surrendered. Citadel alleges both men played central roles in recruiting Shatz and met with him in London while he was still bound by a non-compete agreement. While Marshall Wace previously contested the breadth of discovery, the filing asserts the firm now acknowledges their involvement in building out its credit team while citing concerns over administrative burden and potential harassment.

The dispute traces back to an ongoing arbitration between Shatz and Citadel, where he worked until mid-2023. Shatz contends he is owed an eight-figure sum after flagging potential securities violations internally, while Citadel maintains he breached his contractual obligations by joining Marshall Wace. The London-based firm, which has faced recent turbulence in its credit division including the departure of systematic credit head Weijian Chuah, declined to comment on the new allegations. Citadel also remained silent on the filing, which marks a significant escalation in the struggle to determine exactly when and how the transition of its former credit manager occurred.