Key Takeaways
- • Record Legal Cost Award: Jacopo Moretti has been ordered to pay £1.6m in legal costs after losing an employment tribunal case—nearly four times the previous record award of £432,000 set in 2020, representing a significant escalation in tribunal cost penalties.
- • False Accusations Dismissed: A judge dismissed all claims of discrimination, harassment, and anti-Semitism against hedge fund chief Davide Leone, finding that Moretti's allegations had "no reasonable prospect of success" and were designed to cause "maximum disruption" and reputational damage.
- • Strategic Targeting of Investor Base: The tribunal heard that Moretti deliberately weaponized anti-Semitism allegations knowing Leone's hedge fund (DLP) depends heavily on ultra-high net worth Jewish investors, amplifying the reputational impact beyond the legal merits of the claim.
- • Solvency Questions Undermined Defense: Despite claiming inability to pay costs, Moretti was found to maintain Monaco residency at £4,000 monthly, own a $49,000 Porsche 911, and allow his brother rent-free use of a £1.7m London property, significantly weakening his financial hardship argument.
- • Partial Unfair Dismissal Concession: While dismissing discrimination claims, the judge awarded Moretti a basic unfair dismissal sum for procedural failures, though this was substantially offset by the cost award.
Summary
An English employment tribunal has imposed record-breaking legal costs on a hedge fund employee who lost his case alleging anti-Semitism and discrimination against his employer. Jacopo Moretti, described as the "right-hand man" of Davide Leone—chief of hedge fund DLP—has been ordered to pay approximately £1.6m in legal costs to Leone and other defendants following the dismissal of his employment tribunal claim last year.
The tribunal judge found that Moretti had pursued claims "knowing that [Leone's] business is heavily reliant on the investments of ultra-high net worth Jewish investors," effectively weaponizing anti-Semitism allegations to maximize reputational damage. The judge determined that Moretti's claims had "no reasonable prospect of success" and were initiated with the deliberate intent to cause "maximum disruption" to Leone and the hedge fund. All discrimination and harassment allegations were dismissed.
The £1.6m cost award represents an extraordinary escalation in employment tribunal penalties, nearly quadrupling the previous record of £432,000 established in 2020. Under standard tribunal rules, major cost awards are rare, making this determination noteworthy for institutional investors concerned with litigation risk and reputational exposure in alternative asset management.
Moretti's credibility was further undermined when the tribunal examined his claim of inability to pay costs. Evidence revealed that Moretti maintained Monaco residency at £4,000 monthly expenses, owned a 1974 Porsche 911 valued at $49,000 (approximately £37,000), and permitted his brother to occupy a £1.7m London flat rent-free. These financial disclosures contradicted his assertion of limited means.
The tribunal did award Moretti a basic unfair dismissal payment due to procedural failures by DLP in its dismissal process, though this nominal sum was substantially eclipsed by the cost judgment. The case underscores reputational and financial risks associated with unfounded discrimination claims in the hedge fund sector, particularly those targeting investor bases defined by religious or ethnic affiliation.
The tribunal judge found that Moretti had pursued claims "knowing that [Leone's] business is heavily reliant on the investments of ultra-high net worth Jewish investors," effectively weaponizing anti-Semitism allegations to maximize reputational damage. The judge determined that Moretti's claims had "no reasonable prospect of success" and were initiated with the deliberate intent to cause "maximum disruption" to Leone and the hedge fund. All discrimination and harassment allegations were dismissed.
The £1.6m cost award represents an extraordinary escalation in employment tribunal penalties, nearly quadrupling the previous record of £432,000 established in 2020. Under standard tribunal rules, major cost awards are rare, making this determination noteworthy for institutional investors concerned with litigation risk and reputational exposure in alternative asset management.
Moretti's credibility was further undermined when the tribunal examined his claim of inability to pay costs. Evidence revealed that Moretti maintained Monaco residency at £4,000 monthly expenses, owned a 1974 Porsche 911 valued at $49,000 (approximately £37,000), and permitted his brother to occupy a £1.7m London flat rent-free. These financial disclosures contradicted his assertion of limited means.
The tribunal did award Moretti a basic unfair dismissal payment due to procedural failures by DLP in its dismissal process, though this nominal sum was substantially eclipsed by the cost judgment. The case underscores reputational and financial risks associated with unfounded discrimination claims in the hedge fund sector, particularly those targeting investor bases defined by religious or ethnic affiliation.
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