David Einhorn has filed a lawsuit seeking to unmask the identity of an anonymous financial blogger who, he says, disclosed that Einhorn’s hedge fund was buying shares in a technology company.
The legal manoeuvre illustrates the tension between a money manager’s ability to safeguard his trading strategies and the rights of others to report on them.
The New York Times reports that the lawsuit, filed on Friday in New York State Supreme Court by Mr. Einhorn’s Greenlight Capital hedge fund, seeks to force the popular investment website Seeking Alpha to disclose the identity of the anonymous blogger known as Valuable Insights.
On Tuesday, Judge Carol Edmead, of Manhattan Supreme Court, said that representatives for Seeking Alpha must appear in court on March 18th to explain why she should not grant Greenlight’s motion that would force the website to disclose the blogger’s name.
Einhorn contends a November 14th blog post on Seeking Alpha that mentioned that Greenlight was buying big blocks of shares in Micron Technology had interfered with his $10bn fund’s investment strategy. The fund claims that the disclosure by the blogger Valuable Insights caused Micron’s share price to rise, as Greenlight was continuing to make purchases and cost Greenlight’s investors’ money in the process.
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