Fairfax Announces Filing of Lawsuit Alleging Stock Manipulation Wednesday July 26, 4:52 pm ET
TORONTO, ONTARIO--(MARKET WIRE)--Jul 26, 2006 -- Fairfax Financial Holdings Limited (TSX:FFH-SV.TO - News)(NYSE:FFH - News) announces that today it filed a lawsuit seeking $5 billion in damages from a number of defendants who, the complaint alleges, participated in a stock market manipulation scheme involving Fairfax shares. The complaint, filed in Superior Court, Morris County, New Jersey, alleges violations of various state laws, including the New Jersey Racketeer Influenced and Corrupt Organizations Act (RICO), pursuant to which treble damages may be available.
Defendants include: S.A.C. Capital Management, LLC, S.A.C. Capital Advisors, LLC, S.A.C. Capital Associates, LLC, S.A.C. Healthco Funds, LLC, Sigma Capital Management, LLC, Steven A. Cohen, Exis Capital Management, Inc., Exis Capital, LLC, Exis Differential Partners, L.P., Exis Integrated Partners, L.P., Adam D. Sender, Spyro Contogouris, Max Bernstein, Andrew Heller, Lone Pine Capital, LLC, Lone Pine Members, LLC, Lone Pine Associates, LLC, Rocker Partners, L.P., Copper River Partners, L.P., David Rocker, Third Point LLC, Daniel S. Loeb, Jeffrey Perry, Trinity Capital Of Jacksonville, Inc., Trinity Fund, Ltd., Morgan Keegan & Company, Inc., John D. Gwynn, and Christopher Brett Lawless.
Biovail's US$4.6B suit claims it's the victim of stock market manipulation
TORONTO, Feb 22, 2006 (The Canadian Press via COMTEX) -- Canadian drug maker Biovail Corp. (BVF) filed a U.S. lawsuit on Wednesday seeking $4.6 billion US in damages from 22 defendants, including SAC Capital Management and its founder Steven Cohen.
The complaint alleges that Biovail was the target of a "massive and fraudulent disinformation campaign" that involved biased analyst reports from purportedly independent sources hired to do "hatchet jobs" to drive down Biovail's stock.
The suit alleges that since spring 2003 to the present, the defendants orchestrated so-called "bear attacks" against Biovail that artificially drove down the price of its stock to the advantage of SAC and other hedge funds.
The defendants include: several SAC-affiliated companies, Gradient Analytics, Inc., Camelback Research Alliance, Inc., Pinnacle Investment Advisors, Helios Equity Fund, Hallmark Funds, Gerson Lehrman Group, and Gerson Lehrman Group Brokerage Services.
Individuals named as defendants include Steven Cohen, Arthur Cohen, Joseph Healey, Timothy McCarthy, David Maris, James Carr Bettis, Donn Vickrey, Thomas Lehrman, Patrick Duff, and James Lyle, the company said.
The complaint alleges violations of various state laws, including the New Jersey Racketeer Influenced and Corrupt Organizations Act.
If that allegation were proved in court, it could result in the defendants being liable for triple the amount of any damages the plaintiffs are awarded.
Report Says Prosecutors Probing Hedge Fund that Issued Reports on Web Site
On February 6, the Wall Street Journal reported that prosecutors are probing hedge fund Gotham Partners Management Co. According to reports, prosecutors are "examining whether it bought into credit derivative markets to make it appear that companies it was bearish on were in danger of default". Reuters reported:
Gotham issued critical reports about MBIA and Farmer Mac on its Web site and their stocks fell. Each company approached regulators about the matter, alleging that Gotham might have acted with other hedge funds to push the stock down, sources at the companies told Reuters last week.
SAN FRANCISCO (MarketWatch) -- A California judge has allowed Overstock.com Inc. to proceed with its suit against Gradient Analytics Inc. and Rocker Partners LP, Overstock said Tuesday evening.
Superior Court Judge Vernon Smith in Marin County, a San Francisco suburb, denied the defendants' motions to dismiss the suit under the anti-strategic lawsuits against public participation (SLAPP) statute, Overstock said.
OSTK22.92, -0.06, -0.3%) alleges research firm Gradient Analytics and hedge fund Rocker Partners "colluded to drive down Overstock.com's stock price for their own profit." The original suit was filed in August 2005. Smith ruled that the anti-SLAPP statute addresses commercial speech, and Rocker's "alleged misconduct in conspiring with Gradient...is not, on its face, promotional in nature," according to Overstock.com.
In a statement Tuesday, Gradient said the company plans to immediately appeal the ruling. That action could delay proceedings in the trial court until the appellate process has been exhausted.
Scottsdale, Ariz.-based Gradient said First Amendment case law protects its rights. "If this decision stands, independent financial analysts will become easy prey for the companies they study - and everyone would lose," Gradient said.
The Securities and Exchange Commission is investigating allegations of manipulation regarding Overstock's shares.
WASHINGTON - The Securities and Exchange Commission routinely subpoenas companies and financial market figures. Rarely does it go after journalists' records, yet it sought recently to compel two reporters to turn over material.
The legal move comes at a time of heightened sensitivity over press freedom and government action against journalists.
After issuing a subpoena on Feb. 7 to two financial journalists, the SEC decided last week against compelling them, at least for now, to surrender records as part of an investigation into allegations of stock manipulation.
The subpoena went to columnists for two Dow Jones & Co. publications, Herb Greenberg of MarketWatch and Carol Remond of Dow Jones Newswires. The subpoena sought telephone records, e-mails and other documents related to the online retailer Overstock.com. Greenberg and Remond have written columns about Overstock. --------------------------------------------------------
February 28, 2006 (FinancialWire) Even as U.S. Securities and Exchange Commissioner Christopher Cox bowed to pressure from Dow Jones (NYSE: DJ) and other media by proclaiming that subpoenas to journalists must pass through him and the full Commission, 87% in a poll on General Electric’s CNBC were saying they support the subpoenas, and TheStreet.com’s (NASDAQ: TSCM) Jim Cramer, also on CNBC may have turned the tide by arrogantly tossing a subpoena he received, something that never plays well to regulators.
The subpoenas to Cramer and Herb Greenberg, who appeared on Cramer’s “Mad Money” show, and to Carol Remond, who like Greenberg now works for Dow Jones, are part of an SEC investigation into alleged tainted research and collusion with hedge funds Rocker Partners, SAC Capital and others thought to relate to manipulative naked short sales of Overstock.com (NASDAQ: OSTK) and Biovail (NYSE: BVF), and perhaps others.
At least one panelist on CNBC’s Kudlow & Co. said that the subpoenas had in fact been signed off on by Linda Thomsen, the Director of Enforcement at the SEC, meaning the last of this episode is a long way from playing out. It is not believed an individual at the SEC at that level would have lightly signed subpoenas for journalists.
While Greenberg and Cramer wear their “journalism” hats in defending themselves against the exercise of the subpoenas, both are also businessmen, and the question is in which capacity the SEC wants to examine their communications. Greenberg was an editor for TheStreet.com when affidavits in the Overstock suit alleged what might be viewed as a relationship so close to Gradient Analytics (then Camelback Research) as to have been potentially conflictual if not collusive. In fact, one affidavit stated that a reporter, Brian Harris, working under Greenberg at TheStreet.com actually wrote some of the “research” reports, and had office space at Gradient. When the story broke, the reporter’s name was apparently mysteriously removed from TheStreet.com’s masthead without notice or explanation.
The SEC is said to be looking into these relationships, and especially whether “research” reports were routinely disclosed to hedge funds Rocker Partners and SAC Capital Management and others, before being released to the public, and whether there was a further knowing or unknowing relationship with certain journalists whereby the reports’ “findings” were disseminated more “explosively” in such a way as to increase the profits of the hedge funds.
Steve LeCompte, managing partner of CXO Advisory Group LLC has in fact calibrated what he believes to be systematic front-running of Greenberg’s stock commentary.
johmond: So proboards wants a contribution now, how about they put back 1MM's......
Feb 24, 2021 18:00:23 GMT -4
mayz: Still here and keeping the faith.
Feb 24, 2021 18:35:01 GMT -4
Jed: Did you ALL know that Proboards was collecting and selling our personal information all these years??? Scroll to the very bottom of the donation page www.proboards.com/contribute See where it says “Do Not Sell My Personal Information"
Feb 24, 2021 20:16:41 GMT -4
narvo: Wondering if anyone here ever knew the shareholder last name Ehmann from the desert area of California? He was a good man and he liked fell off the face of the Earth. I am sensing a bad feeling. He held many shares. Thx, Narvo
Feb 25, 2021 0:20:13 GMT -4
bbildman: 2 Covid Moderna vaccine shot done, nd I am still alive
Feb 25, 2021 16:14:52 GMT -4
narvo: Another link with CMKX in it.QFS Schedule: According to Military Intel Contact Tier 4B should be notified to set redemption/ exchange appointments on Mon. 1 March or Tues. 2 March,though it may happen sooner.QuantumFinancialSystem anonup.com/thread
Feb 28, 2021 0:02:28 GMT -4