Wednesday, 1 October 2014
Last updated 47 sec ago
Sep 7 2012 | 11:20am ET
The Securities and Exchange Commission's insider-trading case against Wynnefield Capital founder Nelson Obus and two others will move forward, after all.
The regulator won its appeal of a two-year-old lower court decision dismissing its lawsuit against Obus, Wynnefield analyst Peter Black and Black's friend Thomas Strickland. The SEC accuses Strickland, who worked at GE Capital, of tipping Black off to Allied Capital Corp.'s planned acquisition of SunSource in 2001. Black then allegedly told Obus, who bought up a 6% stake in SunSource, turning a $1.34 million profit for his three hedge funds.
The lower court had cited a GE Capital investigation which found that Strickland had not violated a duty to his employer. But the Second Circuit Court of Appeals in Manhattan said that was not enough evidence to exonerate Obus, Black and Strickland without trial.
"The GE investigation was motivated by corporate interests that may or may not coincide with the public interest in unearthing wrongdoing and affording a remedy," U.S. Circuit Judge John Walker Jr. wrote.
"The SEC established genuine issues of material fact with respect to its claims of insider trading," Walker wrote. A "rational jury could reasonably infer from the SEC's evidence that Strickland did tell Black that SunSource was about to be acquired."
Obus' lawyer, Joel Cohen, said his client was "disappointed" by the ruling, adding, "For over 10 years, Mr. Obus and Wynnefield Capital have refused to settle this lawsuit as a matter of principle. The facts remain the same: The lawsuit is baseless."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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