Citadel has secured a court ruling allowing it to obtain communications from two senior Marshall Wace executives as part of an ongoing legal dispute over the recruitment of former portfolio manager Daniel Shatz, according to a report by Bloomberg.

New York Supreme Court Justice Andrea Masley ruled that Marshall Wace executives Anthony Clake and Alan Hofmeyr fall within the scope of Citadel's subpoena, ordering the London-based hedge fund to expand its search for documents relating to Shatz's appointment as global head of credit.

The dispute centres on allegations that Shatz improperly accessed and retained confidential Citadel information before leaving the firm in 2023 and subsequently joining Marshall Wace in 2024. Citadel claims the materials included recruitment lists, strategic plans for developing a global credit business and candidate evaluation records. Shatz has separately initiated arbitration proceedings, alleging that Citadel withheld an eight-figure deferred compensation package in retaliation for raising concerns about potential securities violations.

Citadel argues that Clake and Hofmeyr played significant roles in recruiting Shatz and planning Marshall Wace's credit expansion before his official start date. Marshall Wace has disputed the scope of the document requests, maintaining that it has cooperated with the subpoena process and describing certain demands as unnecessary.

The ruling marks the latest development in a dispute over hedge fund recruitment practices, confidential investment information and deferred compensation, as competition for senior portfolio managers and credit trading talent remains intense across the industry.

Citadel welcomed the court's decision, while Marshall Wace declined to comment.