Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
5Activity
0 of .
Results for:
No results containing your search query
P. 1
Citadel vs. Yihao Ben Pu

Citadel vs. Yihao Ben Pu

Ratings: (0)|Views: 12,108|Likes:
Published by DealBook

More info:

Categories:Types, Business/Law
Published by: DealBook on Aug 30, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

11/07/2012

pdf

text

original

 
FirmNo.90875INTHECIRCUITCOURTOFCOOKCOUNTY,ILLINOISCOUNTYDEPARTMENT,CHANCERYDIVISIONCITADELLLC,
))
Plaintiff,
)
)
vs.
)
No.
)
YIHAOBENPU,
)
)
Defendant.
)
VERIFIEDCOMPLAINTFORINJUNCTIVEANDOTHERRELIEFPlaintiffCitadelLLC("Citadel"),foritsVerifiedComplaintforInjunctiveandOtherRelief("Complaint")againstDefendantYihaoBenPu("Pu"),allegesasfollows:INTRODUCTION1.CitadelrecentlydiscoveredthatPu,aQuantitativeFinancialEngineerinCitadel'stacticaltradingbusiness,installedunauthorizedprogramsonCitadel'scomputersystemstobypasssecuritymeasuresthatpreventthetransferofCitadelinformationtoexternaldevices.WhileCitadel'sinvestigationofPu'sconductisnotcomplete,CitadelhasalreadydiscoveredthatPuusedthisillegalsecuritybypasstotransfermassiveamountsofhighlyconfidentialinformationrelatingtothecoreofCitadel'stacticaltradingbusinesstoatleasttwopersonalexternaldevicesinviolationofPu'sNon-DisclosureAgreement,theIllinoisTradeSecretsActandCitadelpoliciestowhichPuagreedtobebound.2.PuhasrepeatedlyliedtoCitadelabouthisactivitiesandhaspurposefullydestroyedevidenceinordertothwartCitadel'sinvestigation,despitePuhavingreceivedexpressinstructionsfromCitadelanditscounseltopreserveallrelevantevidence.Moreover,PuhasbeeninveryrecentdiscussionswithaCitadelcompetitor-boththrougharecruiteranddirectly
 
duringthecourseofCitadel'sinvestigation.Theprincipalofthecompetitor,MikhailMalyshev,isaformerseniorCitadelemployeewhowasfoundbyacourttohaveliedunderoath,destroyedevidencepotentiallyshowingthetheftofCitadeltradesecrets(forwhichhewassanctioned$2.2million),andiscurrentlyunderindictmentforfelonyperjury.3.Theimmediatepurposeofthislawsuitistosecuretemporaryandpreliminaryinjunctiverelief(i)tomaintainthestatusquo,(ii)topreventfurthermisappropriationandpotentialuseofCitadel'stradesecretsandconfidentialinformation,(iii)tosecureCitadel'stradesecretsandotherpotentiallyrelevantevidencefromPuandpotentiallycomplicitthirdpartiesthroughexpediteddiscovery,and(iv)toevaluatetheextentoftheharmsufferedthusfarbyCitadel.AbsentthereliefrequestedinthisComplaintanditsaccompanyingfiling,CitadelwillsufferirreparableharmasaresultofPu'smisappropriation,andpotentialuseof,Citadel'sconfidentialandtradesecretinformation.
1
JURISDICTION
ANDVENUE
4.JurisdictionisappropriateinCookCountybecausePuisaresidentofCookCounty,Illinois,andbecausehesignedaNon-DisclosureAgreement,amongotheragreements,expresslyprovidingforjurisdictionandvenueofactionssuchasthisoneinthecourtsofCookCounty,Illinois.5.VenueisproperinthisCourtbecauseallorasubstantialpartoftheeventsgivingrisetotheseclaimsoccurredinthiscounty,includingPu'sbreachesandthreatenedbreachesofdutiesowedtoCitadel.Inaddition,PuexpresslyacknowledgedinmultipleagreementswithCitadelthatthisCourtisanappropriatevenue.
1Citadeland
Pu
arepartiestoaMediation!ArbitrationAgreement,butthatagreementexpresslyauthorizesCitadeltosecuretemporaryandpreliminaryinjunctivereliefinacourtofcompetentjurisdiction.
2
 
CITADELANDTHETACTICALTRADINGBUSINESS
6.CitadelisaDelawarelimitedliabilitycompanywithitsprincipalplaceofbusinessinChicago,Illinois.Citadelisafinancialinstitutionwhosebusinessesincludealternativeinvestments,marketmaking,capitalmarkets,andtechnology-relatedproductsandservices.OneofCitadel'sbusinessesisknownasTacticalTrading("TT").Citadel'sTTbusinessdeploysautomatedelectronictradingstrategiesthatfocusonusingmathematicalandstatisticalcomputermodels,whicharetranslatedintoalgorithms,toidentifyshort-terminvestmentopportunitiesinglobalequities,futures,andotherinvestmentinstruments.7.Citadel'sTTbusinesscreatesandappliesmathematicalandstatisticalmodelsinordertofindandinvestinshort-terminvestmentopportunities.Citadel'sTTmodelsdescribeparticularstatisticalrelationshipsamonginvestmentinstrumentsand/orinvestmentactivities.Thesemodelsaretranslatedintoalgorithmsandintegratedintocomputersourcecodeandelectronictradingprogramsthatautomaticallyexecutetradingordersupontheoccurrenceofcertaineventsinthemarkets.8.Citadel'sTTgroupemployshighlyeducatedandtechnicallyskilledpeople,anumberofwhomareresearcherswithPh.Dsinmathematics,physics,andotherfields.TheTTgroupincludesindividualswhofocusonquantitativeresearch,otherswhofocusontheinformationtechnologysideofthebusiness,andsomewhodoboth.Thequantitativeresearch("QR")teamidentifiesthestatisticalrelationshipsthatcangenerateprofitableinvestments;theinformationtechnology("IT")teamworkswiththequantitativeresearcherstoturnthoserelationshipsintoexecutablecomputercode.Together,Citadel'sQRandITteamscreatevaluableintellectualproperty("IP:')thathasgeneratedsignificantreturnsforCitadel'sinvestors.9.ThebuildingblocksofCitadel'sTTtradingalgorithmsandstrategiesarepredictionsignals,commonlyreferredtoasalphas.Thesepredictionsignals,oralphas,are3

Activity (5)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
tpitikaris liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->