FSA v Greenlight Capital, Einhorn and Osborne

Charles Flint QC acted for the investment banker involved in the disclosure to David Einhorn of the hedge fund Greenlight Capital of inside information relating to a proposed capital raising by Punch Taverns Plc in June 2009. The case raised difficult issues on wall crossing procedures, what constitutes inside information under section 118 of FSMA and responsibility for disclosure when some information is disclosed by others. The hedge fund and its manager received penalties of £7.2 million for trading on the basis of inside information disclosed. The investment banker Andrew Osborne received a penalty of £350,000 for market abuse constituted by improper disclosure of inside information, which disclosure was not deliberate nor reckless.