Third Point Rethinks Subpoenas Of Journalists

Mar 10 2011 | 11:46am ET

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testimony or documents from any member of the media, and any prior subpoenas issued to journalists have been fully withdrawn," the hedge fund's lawyer, Bill Carmody, told Reuters.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.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.