Ray Dalio's Bridgewater Loses Trade Secrets Claim Against Former Staff, Arbitrators Say Hedge Fund Manufactured Evidence

Bridgewater Associates LP has lost a claim of trade secrets theft it brought against former employees in arbitration, The Wall Street Journal reported Monday.

A three-arbitrator panel earlier this month found that the $140-billion hedge fund both falsified and withheld certain evidence, according to a Monday court filing, WSJ reported. 

Bridgewater brought the claims against the two formers employees, Zachary Squire and Lawrence Minicone, "not to prove misappropriation, but rather, to adversely affect [their] ability to conduct a competitive business," the arbitrators said in the filing. 

Billionaire Ray Dalio's hedge fund had brought the case against Squire and Minicone for arbitration in 2017, alleging the former employees misappropriated trade secrets, breached their contracts and engaged in unfair competition.

Squire and Minicone petitioned a New York court earlier this month to require Bridgewater to honor the arbitrators' ruling and award them $2 million in attorney fees and other costs, the Journal said. 

The duo has also asked the court for permission to publicly disclose the findings of the panel.