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Jane Street Group LLC and Millennium Management LLC have officially resolved their trade secrets dispute, according to a joint stipulation of dismissal filed Thursday in New York federal court. The litigation centered on allegations of misappropriation of a proprietary trading strategy developed by Jane Street.

Claims Dismissed With Prejudice

The dismissal, agreed upon by Jane Street, Millennium, and two former Jane Street employees, terminates all claims and defenses with prejudice, ensuring they cannot be refiled. In the concise filing, the parties agreed to bear their own legal fees and court costs. However, the filing did not disclose whether the resolution involved a settlement or any specific terms. Attorneys for the parties did not respond to requests for comment late Thursday.

Allegations of Trade Secret Misappropriation

Jane Street accused former employees Douglas Schadewald and Daniel Spottiswood of taking a confidential trading strategy to Millennium when they joined the firm earlier this year. The strategy, described as "highly confidential," was developed after years of research and reportedly provided Jane Street with a competitive edge in trading options in India. The firm claimed its profits declined due to the alleged trade secret misappropriation.

Schadewald and Spottiswood, who joined Jane Street in 2018, were allegedly integral to the strategy’s development in 2023. Despite being bound by confidentiality agreements, Jane Street claimed the pair improperly shared the strategy with Millennium.

Counterclaims Rejected by the Court

In response, Millennium and the former employees filed counterclaims accusing Jane Street of acting in bad faith, asserting the litigation was intended to harm Millennium’s business and reputation. Schadewald and Spottiswood also sought a declaratory judgment naming them as the prevailing parties under their contracts with Jane Street.

U.S. District Judge Paul A. Engelmayer rejected these counterclaims in July, ruling that the Defend Trade Secrets Act does not support a standalone claim for attorney fees and finding no grounds under the Declaratory Judgment Act for the bad-faith filing claim. Judge Engelmayer’s order left Jane Street's allegations as the focus of the case until Thursday’s dismissal.

Legal Teams Involved

Jane Street was represented by Quinn Emanuel Urquhart & Sullivan LLP, including attorneys Alex Spiro, Deborah K. Brown, Jeffrey C. Miller, Kaitlin P. Sheehan, Greg Miraglia, and Jeff Nardinelli. Millennium’s legal representation came from Dechert LLP, including Andrew J. Levander, May K. Chiang, Martin J. Black, and Daniel R. Roberts. Schadewald and Spottiswood were represented by Elsberg Baker & Maruri PLLC, with attorneys Rollo C. Baker, Alexandra Sadinsky, David Elsberg, Brian R. Campbell, Kateryna Shokalo, and Vivek Tata.

Case Comes to a Close

With the dismissal, the contentious case involving allegations of trade secret theft and accusations of litigation abuse has ended. The lack of disclosed terms leaves questions about whether the dispute was resolved through a settlement or other private arrangements, but the dismissal ensures the parties can now move forward without further court proceedings.