A London judge has ordered Evolution Capital Management to pay former hedge-fund trader Robert Gagliardi a $5.4m bonus after ruling the firm wrongfully withheld his payout during a US block-trading investigation that ultimately brought no charges, according to a report by Bloomberg.

Gagliardi, who worked at Evolution for just 10 months, argued he generated 97% of the firm’s revenues and was denied compensation after being swept into a high-profile DOJ and SEC probe that also ensnared major Wall Street figures. Evolution claimed reputational damage justified withholding what it called a discretionary bonus and countersued, alleging he had handled confidential information.

Justice Neil Calver rejected Evolution’s arguments, dismissed the counterclaim, and said Gagliardi had produced “exceptional profit” for the funds and gave credible evidence. Regulators informed the trader in 2024 that no action would be taken against him.

The block-trading investigation previously led Morgan Stanley to pay $249m to settle related allegations.