BlackRock was sued for US$20 million by a whistle-blowing former vice-president who said it fired him after he objected to a colleague’s self-dealing, and was forced to shut down a search engine for monitoring client discussions about illegal investments including in China.
In a complaint on Saturday, Hamdan Azhar said the big asset manager ordered him in March 2022 to stop work on Trend Spotter, which he had developed, and transfer his projects to Rightpoint, where the husband of former boss Tiffany Perkins-Munn worked.
He also said his new boss Riaz Hakkim refused to escalate concerns about client discussions that Trend Spotter could have tracked, and whether its revelations aligned with BlackRock’s public disclosures to investors and regulators.
Azhar said he began developing Trend Spotter in March 2021 as a “hackathon” project, and that it received “widespread attention and acclaim” within BlackRock.
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The New York-based company ended in March with US$10.5 trillion of assets under management.
A BlackRock spokesman called Azhar’s accusations “completely meritless”, and said Azhar was let go for poor performance and unprofessional conduct. “The claim that BlackRock engaged in illegal investments is absurd,” the spokesman added.
Azhar’s lawyer did not immediately respond to requests for comment.
In April, the committee found that Wall Street, through index fund investments, channelled US$6.5 billion in 2023 into 63 Chinese companies flagged by the US government for supporting China’s military or human rights abuses.
The committee urged Congress to pass laws to restrict such investments. BlackRock and MSCI have denied wrongdoing and said they complied with existing US laws.
Azhar said he joined BlackRock in February 2020 as head of data science for global marketing.
His lawsuit at a New York state court in Manhattan seeks US$10 million each of compensatory damages and punitive damages for violating state labour law.