Elliott Sues Cedar Hill For Spying, Stealing

Feb 26 2008 | 12:43pm ET

Elliott Associates has accused another hedge fund of spying and stealing proprietary trading technology.

The $10 billion New York-based hedge fund, run by Paul Singer, filed suit today against Cedar Hill Capital Partners alleging it of scheming to “literally steal the software in order to use it for its own trading activities,” branding the activity “nothing short of an overt act of corporate espionage.”

According to the complaint, filed in federal court in Manhattan, Cedar Hill conspired with an Elliott employee and consultant in the “illicit conduct” beginning in October.

Elliott is seeking damages for misappropriation of trade secrets, unfair competition and other claims, and has asked the court to stop Cedar Hill from “further wrongfully exploiting its confidential and proprietary information.”

The allegedly stolen software is used by Elliott to analyze fixed-income securities for trading collateralized debt obligations. According to the firm, it took more than two years and millions of dollars to develop.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat