Friday, 27 May 2016
Last updated 3 hours ago
Sep 1 2010 | 11:04am ET
Elliott Management has dropped its bid to force an industry magazine to divulge the source of its June 30 investor letter.
New York-based Elliott withdrew its discovery petition, filed last month, against AR magazine. The hedge fund had no comment on the abrupt end to the case, which came before AR filed its response, but said that unidentified “developments since the application was filed make the discovery unnecessary.” AR posted its response online, anyway.
“This was a blatant attempt to bully us and it backfired,” Michelle Celarier, AR’s editor, said. “While trying to intimidate us into not publishing the story, Elliott did a disservice to itself.”
“The fact that they filed this notice of voluntary discontinuance means they knew their motion was meritless and would not succeed,” John Pelosi, a lawyer for AR, said in a statement. “It’s clear that they totally ignored applicable precedent and privilege afforded under the New York shield law to reporters in New York.”
Despite the lawsuit, AR published its story last week, showing that Elliott had returned 5.3% in the first half, well ahead of most industry benchmarks. The magazine also revealed some of the hedge fund’s investments.