Perry Settles Vote-Buying Charges

Jul 23 2009 | 2:28am ET

Perry Capital has settled charges that it sought to conceal its efforts to push forward a merger that Carl Icahn called “extremely stupid.”

The New York hedge fund agreed to pay $150,000 to settle the Securities and Exchange Commission complaint without admitting or denying the charges. The SEC alleged that Perry failed to disclose its purchase of almost 10% of the common shares of pharmaceutical company Mylan Laboratories with plans to back the company’s acquisition of King Pharmaceuticals. The hedge fund allegedly entered into swap transactions in an effort to skirt disclosure requirements, by masking the stock purchases as occurring “in the ordinary course of business.”

“By acquiring significant voting rights to Mylan shares without informing the marketplace, Perry illicitly increased its potential to profit from its merger arbitrage position,” said David Rosenfeld of the SEC's New York office. “Perry's failure to follow the disclosure obligations of the securities laws deprived the market of important and relevant facts.”


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...