D.E. Shaw sent a memo to employees in the fallout from an employee fired for inappropriate behavior

D.E. Shaw, the $50 billion hedge fund firm, sent a memo to employees on Monday in the fallout from firing a portfolio manager for inappropriate behavior.Business Insider earlier reported that D.E. Shaw fired Daniel Michalow, a senior portfolio manager in the firm's discretionary macro group, after the fund conducted an investigation in March. The investigation was sparked after Michalow allegedly said to a former assistant that one of the requirements for hiring a new assistant was someone that he could "call sugar tits," people familiar with the matter told Business Insider.Michalow is fighting back, and sent a letter to D.E. Shaw founder David Shaw on Monday. A copy of the letter was seen by Business Insider.In its memo to employees, which was also obtained by Business Insider, D.E. Shaw said that Michalow's departure "was the result of gross violations of our standards and values."You can read the full statement below:You may have seen press today about Daniel Michalow's departure from the firm. In fact, as we said in our statement, Daniel's departure was the result of gross violations of our standards and values. Earlier this year, during the course of an investigation prompted by an employee complaint, a number of people came forward to report his abusive and offensive conduct, and we moved swiftly to end his relationship with the firm. We hope you understand that in order to protect the privacy of those involved, we won't say more about the particulars of this specific matter. DESCO is committed to a work environment of mutual respect, in which everyone is free from harassment and discrimination. This commitment is embedded throughout our Employee Handbook and our Anti-Discrimination and Anti-Harassment Policy, which states that "every employee has the right to a workplace that provides opportunities fairly and prohibits discriminatory practices, including harassment." But this goes beyond policy for us--it's hard to overstate how seriously we take our responsibility to ensure that DESCO is a good place to work.

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