Key Takeaways
- • Chief U.S. District Judge Laura Taylor Swain of the S.D.N.Y. denied in full two motions to dismiss filed by Novartis International AG and its co-defendants, sending all claims in Richmond Global Compass Fund Management, LP v. Novartis International AG (No. 1:25-cv-06490) to discovery and potentially trial.
- • The lawsuit alleges Novartis, former pension fund alternative investments head Mark Dieringer, Swiss fund marketer GRW AG, and GRW managing partner Gary Johnston misappropriated confidential information and an ESG investment strategy from Richmond Global Compass.
- • The complaint alleges the defendants helped Compass's then-chief investment officer launch a competing hedge fund, which later received a $100 million investment from Novartis.
- • The court's 25-page Memorandum Opinion and Order found adequately pleaded trade-secret misappropriation under the Defend Trade Secrets Act, sustained unfair-competition and aiding-and-abetting claims, found personal jurisdiction over all four defendants, upheld plaintiffs' standing, and declined to dismiss on statute-of-limitations grounds.
- • Plaintiffs' counsel Israel David LLC, led by Adam M. Harris, characterized the ruling as a major victory; the firm's announcement was distributed as a paid placement via GlobeNewswire.
Summary
On October 30, 2026, Israel David LLC announced that a federal court has allowed all claims in a trade-secret and unfair-competition suit brought on behalf of the Richmond Global Compass investment management entities and their late founder, Peter Kellner, to proceed. According to the firm's announcement, Chief U.S. District Judge Laura Taylor Swain denied in full two motions to dismiss filed by Novartis International AG and its co-defendants in Richmond Global Compass Fund Management, LP v. Novartis International AG, No. 1:25-cv-06490 (S.D.N.Y.).
The complaint alleges that Novartis; Mark Dieringer, who served as head of alternative investments and external mandates for Novartis's pension fund; Swiss fund marketer GRW AG; and Gary Johnston, GRW's managing partner, misappropriated Compass's confidential information and proprietary ESG investment strategy. According to the complaint, the defendants used that information to help Compass's then-chief investment officer launch a competing hedge fund, into which Novartis later invested $100 million. The plaintiffs assert claims under the federal Defend Trade Secrets Act and New York law for unfair competition and aiding and abetting breach of fiduciary duty.
In a 25-page Memorandum Opinion and Order, the court rejected every ground advanced by the defendants. It held that the plaintiffs adequately pleaded trade-secret misappropriation, sustained the unfair-competition and aiding-and-abetting claims, found personal jurisdiction over all four defendants, held that the plaintiffs had standing, and declined to dismiss any claim on statute-of-limitations grounds. The ruling sends every claim into discovery.
Adam M. Harris, Managing Partner of Israel David LLC, described the decision as "a major victory for Compass and a complete rejection of the defendants' effort to shut down the case." Harris said the firm expects to obtain additional evidence as the case proceeds. The firm also noted that Kellner did not live to see the ruling, and that Compass intends to pursue the case. The plaintiffs' team is led by Harris and includes Andrew Cauchi and Adia Davis. The announcement is a paid placement; the court's findings are reported as characterized by plaintiffs' counsel, and the defendants have not publicly responded in the source material.
The complaint alleges that Novartis; Mark Dieringer, who served as head of alternative investments and external mandates for Novartis's pension fund; Swiss fund marketer GRW AG; and Gary Johnston, GRW's managing partner, misappropriated Compass's confidential information and proprietary ESG investment strategy. According to the complaint, the defendants used that information to help Compass's then-chief investment officer launch a competing hedge fund, into which Novartis later invested $100 million. The plaintiffs assert claims under the federal Defend Trade Secrets Act and New York law for unfair competition and aiding and abetting breach of fiduciary duty.
In a 25-page Memorandum Opinion and Order, the court rejected every ground advanced by the defendants. It held that the plaintiffs adequately pleaded trade-secret misappropriation, sustained the unfair-competition and aiding-and-abetting claims, found personal jurisdiction over all four defendants, held that the plaintiffs had standing, and declined to dismiss any claim on statute-of-limitations grounds. The ruling sends every claim into discovery.
Adam M. Harris, Managing Partner of Israel David LLC, described the decision as "a major victory for Compass and a complete rejection of the defendants' effort to shut down the case." Harris said the firm expects to obtain additional evidence as the case proceeds. The firm also noted that Kellner did not live to see the ruling, and that Compass intends to pursue the case. The plaintiffs' team is led by Harris and includes Andrew Cauchi and Adia Davis. The announcement is a paid placement; the court's findings are reported as characterized by plaintiffs' counsel, and the defendants have not publicly responded in the source material.
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