California quantitative hedge fund The Voleon Group is abandoning its controversial practice of demanding that ex-employees recuse themselves from the industry for two years without pay.
The $5 billion fund, based in Berkeley, California, has long imposed one of the industry's harshest noncompetition agreements despite California lawmakers' efforts to eliminate the practice.
Insider last week reported on Voleon's noncompete policies, which the company has at times tried to enforce using intimidation and legal threats, ex-employees told Insider.
"I don't know anyone who hasn't signed," a former employee previously told Insider, adding that Voleon managers encouraged employees to sign the agreement.
A Voleon spokesman previously told Insider: "Like most hedge funds, in order to protect its most sensitive intellectual property, Voleon requests that select employees sign noncompetition agreements."
Persons:
they'd, Lee Koffler, hasn't, Voleon, that's, —
Organizations:
Company, Voleon, Labor
Locations:
California, Berkeley , California, York