Jacopo Moretti, a former senior executive and co-founder of hedge fund DL and Partners, has brought a claim for unfair dismissal, harassment, and discrimination against the firm, its founder Davide Leone, and four directors, according to a report by Reuters.
The case, which centres on serious allegations of verbal abuse, antisemitism, and mental health-related disability discrimination, highlights growing scrutiny around workplace culture within the hedge fund industry. Moretti claims that from inside the firm’s elite ranks, he endured a pattern of bullying and psychological mistreatment that culminated in a diagnosed psychiatric injury.
Court documents show that DL and Partners acknowledged Moretti’s disability in May 2023. He had been on leave since April 2022, before the firm formally terminated his contract in June 2023, following a grievance that was investigated—and ultimately dismissed—by external legal counsel.
Moretti is also claiming whistleblower protection, stating that he raised concerns about workplace practices directly to Leone and the fund’s general counsel, and that these disclosures should be protected under UK law.
Lawyers for DL and Partners and the named directors deny the allegations, calling them “totally false” and “groundless.” Leone’s legal team described the exchanges in question—some of which allegedly included remarks about the cost of hiring an assassin—as taken out of context and “light-hearted,” noting that “robust exchanges are to be expected in the hedge fund industry.”
Adding a layer of complexity, the ongoing employment in London tribunal has permitted over 60 hours of covert recordings submitted by Moretti, despite the firm’s objection that these were unauthorised. His counsel argues that these recordings capture years of gaslighting and systematic psychological abuse.
The dispute also touches on accountability for performance. DL and Partners’ defence claims Moretti was responsible for $86 million in investment losses between 2021 and 2022, after which he allegedly began building a legal case. Moretti disputes this, arguing his recommendations were not acted upon.
According to court filings, Moretti earned approximately $2m annually during his tenure. The potential size of the damages award will depend on the tribunal’s decision across multiple claims, including whether whistleblowing protections apply.
This case comes as the UK Financial Conduct Authority (FCA) prepares to release new guidance in June on tackling non-financial misconduct in financial services – a signal that regulators are placing greater emphasis on internal culture and governance.
A related High Court action brought by Moretti has been paused pending the outcome of the employment tribunal. Moretti also recently lost a separate arbitration in which he argued he was a shareholding partner in the fund; the claim was dismissed and he was ordered to pay costs.
