Quinn Emanuel Battles Former Allies in Jane Street Options Case

Quinn Emanuel, a law firm with a reputation for driving hard-nosed litigation, is squaring off against former partners on behalf of Jane Street Group, which claims a theft of its trading strategy.

Alex Spiro, Elon Musk’s go-to lawyer, leads Jane Street’s outside legal team from Quinn Emanuel Urquhart & Sullivan, along with firm partner Deborah Brown.

David Elsberg and Rollo Baker, two former Quinn Emanuel partners who launched boutique firm Elsberg Baker & Maruri this year, represent two former Jane Street employees accused of pilfering the lucrative trading strategy.

The Jane Street lawsuit against its ex-employees offers a view into a high-speed trading market that has soared over the past decade. Jane Street claims it brought in about $1 billion last year from the India options strategy, and the firm’s former traders deny stealing it.

For Quinn Emanuel, the high-profile fight offers an opportunity to show off its roster of talent, past and present. Spiro has built a reputation as a celebrity litigator, with his successful defense of Jay-Z in a trial over claims the rapper breached an endorsement deal for a cologne brand.

Spiro also successfully defended Musk against allegations that the Tesla leader defrauded shareholders with a tweet claiming he’d secured funding to take the company private. He is aiding Adam Neumann’s bid to buy back WeWork Inc.

Elsberg, who will go toe to toe with Spiro in the Jane Street suit, was among a group of 10 lawyers who announced in 2018 that they fled Quinn Emanuel to start a new boutique. That same year, Elsberg helped Crestview Partners LP stop billionaire William Koch from blocking the sale of one of the world’s biggest producers of petroleum coke.

Elsberg’s firm declined to comment. Quinn Emanuel did not immediately respond to requests for comment.

Jane Street made the theft allegations against its former employees, Douglas Schadewald and Daniel Spottiswood, in an April 12 complaint filed in Manhattan federal court. The firm also sued Millennium Management, where it claims Schadewald and Spottiswood are using the allegedly stolen strategy.

US District Judge Paul Engelmayer declined Jane Street’s request for a temporary restraining order on April 19 and scheduled a trial for July. The two traders denied the theft allegations in signed declarations to the court.

Elsberg’s Launches

Elsberg and his nine other ex-Quinn colleagues in 2018 helped start boutique firm Selendy Gay, and he became a name partner there in 2022.

Selendy Gay emerged as a prominent litigation firm despite having fewer than 80 lawyers. It represented Assured Investment Management over accusations of fraud by its funders as well as a plaintiff alleging Apple Inc. was infringing on a patented design.

In February, Elsberg launched a new boutique with Quinn alums. Elsberg Baker & Maruri’s name partners include Baker, who was co-chair of Quinn Emanuel’s corporate governance practice, and Silpa Maruri, who was was co-chair of the Quinn’s Delaware practice.

Baker represented Mirae Asset Management over a $6 billion terminated transaction, and Maruri represented Musk when the billionaire fought in court to acquire X, the platform formally known as Twitter.

The new firm is representing oil producer Vitol Inc., which is seeking arbitration against a company that allegedly has not paid Vitol for delivered product.

The legal team for Schadewald and Spottiswood at Elsberg Baker also includes partner Vivek Tata, also a Selendy Gay alum, senior attorney Brian Campbell, also a Quinn alum, and associate Nicholas Martin.

Jane’s Quinn Team

At Quinn Emanuel, along with Spiro, Jane Street has turned to Brown, who has represented the Federal Housing Finance Agency against major banks, including UBS, JP Morgan and Merrill Lynch, over residential-mortgage backed securities.

Quinn Emanuel’s team also includes associate Jeffrey Miller.

Spiro’s other work for Quinn includes defending rapper Megan Thee Stallion over alleged unpaid wages owed to a former employee in a suit filed April 23 in Los Angeles County Superior Court.

Spiro is facing sanctions over his conduct in Texas state court where he’s defending Musk against defamation allegations. He helped Musk in his $44 billion purchase of X, formerly Twitter.

The case is Jane Street Group LLC v Millennium Management LLC, S.D.N.Y., Docket No. 1:24-cv-02783, 4/12/2024.