TCI, 3G To Pay $11M To CSX

Mar 12 2009 | 4:10am ET

They may have won the war, but two activist hedge funds have lost a battle with CSX Corp. and one of its shareholders.

The Children’s Investment Fund and 3G Capital Partners have agreed to pay $10 million and $1 million, respectively, to CSX and Deborah Donoghue for breaking short-term trading rules. The settlement was approved last week by a New York federal court.

Donoghue has brought a number of cases accusing investors of violating the “short-swing” rule, with aims to keep owners of stakes larger than 10% in a company and insiders from making money in short-term trading. Last year, TCI and 3G won a bruising proxy battle with CSX, earning four seats on the railroad’s 12-member board of directors.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of