Greenlight lesson: potential pitfalls when wall-crossing investors - a
U.K. and U.S. perspective
The U.K. Financial Services Authority (FSA) has recently
issued a number of widely publicised notices that provide helpful signals
as to how the FSA approaches the enforcement of insider dealing and
market abuse violations.
On 25 January 2012, Greenlight Capital and David Einhorn
were fined £7.2 million for engaging in the market abuse offence of
insider dealing under section 118 of The Financial Services and Markets
Act 2000 in relation to an equity issuance by Punch Taverns. The
FSA concluded that David Einhorn's failure to identify information which
he had received during a telephone call with the Punch Taverns'
management and financial advisers as inside information, was a serious
breach of the standard of market conduct expected from someone with his
For a complete
summary, please click here.