Renaissance Technologies Corp. Settles Trade Secrets Dispute

Cravath represented Renaissance Technologies Corp. (“Renaissance”) as plaintiff in an action in New York State Supreme Court alleging that two of its former employees used Renaissance’s proprietary and trade secret statistical algorithms to construct an automated “statistical arbitrage” equities trading system for a rival hedge fund. Renaissance sought both damages and injunctive relief against future misuse of its proprietary information. In 2007, Millennium Partners, the defendant hedge fund, entered into a settlement, pursuant to which it paid $20 million to Renaissance and fired the former Renaissance employees. In 2008, a confidential settlement was reached with the former employees. Cravath continues to advise Renaissance in connection with the protection of its trade secrets.