Biovail and Material Nonpublic Information

A key quote from the multi-billion-dollar Biovail lawsuit against SAC, et al., for alleged stock manipulation:

“[SAC founder Steven] Cohen uses his enormous financial leverage to support SAC’s trading
strategies by demanding access to material nonpublic information from
the financial institutions with whom SAC does business, including
nonpublic inside information concerning public companies and other
clients to whom those institutions owe fiduciary and other duties of
nondisclosure.”

I have no idea if it is true in this case, but where is the fun of being a billion-dollar hedge fund manager if you can’t beat managers into giving you a little non-public information?

Related posts:

  1. Information Games in Real Estate Markets
  2. Conversation vs. Information Overload
  3. Dark Matter in the Information Universe
  4. Billion-Dollar IPOs Only, Please
  5. The Net as Communications vs. Information

Comments

  1. W says:

    Hi,
    Actually, SAC is a very interesting company. Businessweek ran a profile on them a year or so ago, and they came close to alleging the same thing.
    http://www.businessweek.com/magazine/content/03_29/b3842001_mz001.htm
    W

  2. Nigel deGruyther says:

    And if the Ottawa Senators fail to win the Stanley Cup, presumably Melnyk will sue Don Cherry…

  3. Greg Prospero says:

    And let’s not forget the truck accident when BVF reported the loss of several tens of millions of dollars worth of Wellbutrin SR – and the subsequent controversy over the real value of the cargo… could that many pills really fit in there?
    http://www.thestreet.com/_tscs/tech/adamfeuerstein/10136612.html