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Recent SEC settlement illustrates potential threat of derivatives that separate the voting and economic interests of common stock

  • Hunton & Williams LLP
  • -
  • USA
  • -
  • July 29 2009

On July 21, 2009, the Securities and Exchange Commission (“SEC”) announced a settlement agreement with Perry Corp. (“Perry”) stemming from the hedge fund’s alleged failure to disclose its accumulation of nearly 10 percent of an issuer’s voting shares with the intent of influencing a merger vote