NJ Divorce Case: Billionaire Wins Fight to Keep Hedge Fund Secrets Private
A judge ruled that testimony revealing the inner workings of Two Sigma could harm the company.
John Overdeck, a billionaire embroiled in New Jersey's most significant divorce case, has successfully argued to keep sensitive financial information about his hedge fund, Two Sigma, out of public view. The ruling came Tuesday from Family Court Judge Bruce Buechler, who agreed that certain details regarding the company's assets could be considered trade secrets.
Overdeck, 56, had requested that the public be excluded from parts of a hearing discussing the valuation of his stake in Two Sigma, an $80 billion Manhattan-based hedge fund he co-founded. The judge, however, decided against sealing all testimony from Overdeck's expert financial witness, Todd Povlich. Instead, only the portions that could expose proprietary company information will be heard in private.
The legal battle is between John Overdeck and his estranged wife, Laura Overdeck, 56. They are disputing the division of assets in what is potentially one of the largest divorce settlements in the state's history. The couple, who married in 2002 and have three children, did not sign a prenuptial agreement.
Laura Overdeck is seeking approximately 35% of John's share of Two Sigma, which she values at $6.2 billion. John's side contends his portion is worth $4.5 billion. Laura argues that the company, founded in 2001, is a marital asset.
During the public portions of the hearing on Tuesday, Laura Overdeck appeared engaged, actively taking notes and conferring with her legal team. John Overdeck, meanwhile, reportedly spent time looking at his cell phone while his attorney questioned Povlich, his second-to-last witness.
Povlich was expected to detail his methodology for valuing Two Sigma's various entities. Laura's lawyer, Theresa Lyons, had questioned the necessity of sealing this testimony, noting that John's side's overall valuation had already been made public. Judge Buechler expressed concern that Povlich's testimony could reveal information about "where the values are going, what they are looking at, what they are investing in," which he deemed could negatively impact Two Sigma if disclosed.
Laura Overdeck filed for divorce in 2022. She has reportedly rejected a settlement offer exceeding $600 million, believing she is entitled to a larger share of the marital fortune. Earlier in the proceedings, John Overdeck testified for several days, but Laura's testimony was barred after she was accused of hacking his computer, accessing his post office box, and deleting data from her phone.
John Overdeck recently purchased a $72 million waterfront property in Palm Beach, Florida, where he resides with his current girlfriend, Kimia Shadrokh. The hearing is scheduled to resume in public on Wednesday, with further testimony anticipated later this month.