In its ongoing legal battle with Canadian insurer Fairfax Financial Holdings, hedge fund Third Point subpoenaed several prominent business reporters and columnists—and then thought better of it.
The New York-based hedge fund, accused by Fairfax of insider-trading and seeking to drive its stock price down, had sought testimony from The New York Times' Joe Nocera and Bethany McLean, formerly of Fortune magazine. Fairfax alleges that Third Point and several other hedge funds, including SAC Capital Advisors and Kynikos Associates, used journalists in their effort to spread negative rumors about the company.
"Third Point has no intention of seeking testimony or documents from any member of the media, and any prior subpoenas issued to journalists have been fully withdrawn," the hedge fund's lawyer, Bill Carmody, told Reuters.
While Third Point has had a change of heart about subpoenaing journalists, some scribes still face active subpoenas. Morgan Keegan, accused by Fairfax of playing a part in the conspiracy to batter its share price, has subpoenaed Peter Eavis, the former columnist for The Wall Street Journal and TheStreet.com. Fairfax itself indicated that it might seek testimony from Roddy Boyd, formerly of the New York Post, but Fairfax lawyer Michael Bowe told Reuters they might relent now that Third Point has done so.