Israel David LLC Secures Significant Litigation Victory for Hedge Fund Manager Against Novartis
NEW YORK, Oct. 30, 2026 (GLOBE NEWSWIRE) -- Israel David LLC today announced a significant litigation victory for its clients, the Richmond Global Compass investment management entities and their late founder, Peter Kellner. Chief United States District Judge Laura Taylor Swain denied in full two motions to dismiss filed by Novartis International AG and its co-defendants, allowing every claim in Richmond Global Compass Fund Management, LP v. Novartis International AG, No. 1:25-cv-06490 (S.D.N.Y.), to proceed to discovery and potentially trial.
The lawsuit alleges that Novartis; Mark Dieringer, who served as head of alternative investments and external mandates for Novartis’s pension fund; Swiss fund marketer GRW AG; and Gary Johnston, GRW’s managing partner, misappropriated Compass’s confidential information and proprietary ESG investment strategy. According to the complaint, the defendants used that information to help Compass’s then-chief investment officer launch a competing hedge fund, into which Novartis later invested $100 million. The complaint asserts claims under the federal Defend Trade Secrets Act and New York law for unfair competition and aiding and abetting breach of fiduciary duty.
In a 25-page Memorandum Opinion and Order, the Court rejected every ground advanced by the defendants. It held that the plaintiffs adequately pleaded trade-secret misappropriation under the Defend Trade Secrets Act, sustained their unfair-competition and aiding-and-abetting claims, found personal jurisdiction over all four defendants, held that the plaintiffs had standing to bring their claims, and declined to dismiss any claim on statute-of-limitations grounds. The ruling sends every claim into discovery.
“This is a major victory for Compass and a complete rejection of the defendants’ effort to shut down the case,” said Adam M. Harris, Managing Partner of Israel David LLC. “The complaint alleges that the defendants obtained Compass’s confidential information and used it to help launch a rival fund backed by a $100 million Novartis investment. The Court has now sustained every claim, and we look forward to obtaining even more evidence and proving our clients’ case.”
“Peter Kellner founded Compass and pursued this case to protect what he built and to obtain justice,” Harris added. “He sadly did not live to see this day, but Compass intends to finish what he started.”
The Israel David LLC team representing the plaintiffs is led by Harris and includes Andrew Cauchi and Adia Davis.
About Israel David LLC
Israel David LLC is a New York-based litigation boutique representing clients in complex, high-stakes disputes. The firm handles commercial litigation, securities and shareholder matters, antitrust, and other significant disputes nationwide.
Media Contact: Alexander Lange | 202-480-4309 | alange@tridentgmg.com