FSA v Einhorn/Greenlight

The FSA has fined one of the highest profile hedge fund managers in the US, Greenlight run by David Einhorn, for non-deliberate insider dealing. Fines were imposed on both Greenlight and Einhorn (for a total sum of £7.2 million), with Einhorn receiving the second-largest ever fine imposed by the FSA on an individual for market abuse. The inside information was provided to Einhorn/Greenlight during a call with the management of Punch Taverns, a company in which Greenlight held 13% of the shares, and related to an intended equity issuance by Punch. Following the call, Einhorn instructed the sale of Greenlight’s shares in Punch.
Andrew Green QC acted for the FSA. Javan Herberg QC has latterly been retained by Greenlight and David Einhorn.