Leon Cooperman, the hedge-fund legend accused by the U.S. Securities and Exchange Commission of insider trading, asked for its lawsuit to be dismissed, saying the regulator had revised its allegations after his lawyers had argued that he wasn’t bound by a duty not to trade on an insider’s information about a deal.
Bloomberg News reports that the 73-year-old founder and chief executive of Omega Advisors was accused by the SEC in September of using his status as one of Atlas Pipeline Partners' largest shareholders to obtain confidential information from a company executive, who asked him not to use it. He earned about $4m by buying securities in Atlas before the sale of a company asset in 2010, which caused shares to jump 31%, the SEC said.
Before the SEC filed its case, regulators told Cooperman’s lawyers that they believed a corporate executive gave him confidential information on July 19, 2010, after getting assurances from Cooperman that he wouldn’t use it, according to a filing by his lawyers Friday in Philadelphia federal court.
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