Elliott Ends ‘Witch Hunt’ For ‘AR’ Leaker

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.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of