Wednesday, April 04, 2007

Hear Ye! Hear Ye! The Junk Lawsuit is Here!


Thanks to the Naked Shorts blog, a copy of the lawsuit against Dealbreaker.com, duly filed at the U.S. District Court in New York, is available for perusal by those with strong stomachs.

The suit speaks for itself, but my favorite line was this:

28. Defendants acted in bad faith by posting a Document that was clearly designated as confidential and which, therefore, they must have known they did not have authority to post.


Translation: "How dare they publish what we don't want them to publish!"

The legal geniuses behind this hyperarrogant drivel are at the firm of Kobre & Kim LLC.

Greg Newton's take on this idiocy can be found here.

Greg observes as follows:

So how does said notorious putative hedge fund go into court and allege, inter alia

31. Continued disclosure will cause irreparable harm to Solengo…by (1) placing it at a competitive disadvantage by allowing potential competitors blah blah blah; (2) revealing prospective trading strategy to other market players; and (3) discouraging prospective investors through raising confidentiality concerns.

apparently with a straight face? (1) and (2) don’t pass any kind of smell test – indeed, (2) is an especially challenging twist on the truth, given that the brochure contains no information about trading strategy, per se – while ‘confidentiality concerns’ should be well down the list of issues addressed by Solengo’s putative “investors.”
This masterpiece of junk litigation (fortunately not stamped "confidential") can be can be found here.

The brochure itself is here. (Hat tip: FT Alphaville blog.)

I'm still disappointed by the relative lack of media coverage being given to this hedge fund thuggery.

© 2007 Gary Weiss. All rights reserved.

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Wall Street Versus America was published by Penguin USA on April 6.
Click here for its Amazon.com listing and here for more information on the book, from my web site, gary-weiss.com.

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