A former Fidelity semiconductor fund manager has sued the investment firm's parent company, FMR, alleging that it withheld a multimillion-dollar compensation package after he left to join DFO Management, the family office of billionaire Michael Dell.

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Adam Benjamin filed the lawsuit in the Suffolk Division of the Massachusetts Superior Court, claiming Fidelity terminated him on July 10, 2026, after efforts to persuade him to remain at the firm failed. According to the complaint, Fidelity subsequently invoked a non-compete clause that allegedly prevented him from receiving compensation worth millions of dollars.

Benjamin argues that the restrictions are being used improperly as a retention mechanism and a barrier to future professional opportunities. He also disputes Fidelity's alleged position that his move to DFO Management involved joining a competitor. These claims have not been established in court.

Fidelity declined to comment on the lawsuit, according to the report. Benjamin and his lawyers were not immediately available for comment.

Before his departure, Benjamin managed the Fidelity Select Semiconductors Portfolio, a fund with approximately $48 billion in assets. The portfolio had gained 58% so far in 2026, compared with a 13.3% rise in the S&P 500 index, according to figures cited in the report.

The fund also recorded an average annual return of 37.4% over the preceding five years. Morningstar awarded it a five-star rating and a Gold Medalist rating, according to the report.

Benjamin began working at DFO Management on October 1, 2026, the lawsuit states. The case highlights the potential disputes that can arise when senior investment professionals leave asset managers, particularly over compensation agreements and restrictions on employment.

Non-compete clauses are used in parts of the asset management industry, but their enforceability depends on applicable law and the circumstances of each case. The lawsuit's outcome could determine whether Benjamin is entitled to the compensation he claims was withheld.