Greenlight Lawsuit Over Micron: Court DocumentVW Staff
Greenlight Lawsuit Related to Micron Full document below (see more details on the story here)
5. On July 2, 2013, Greenlight commenced its acquisition program for securities of Micron Technologies (“Micron”).
6. On November 14, 2013, Greenlight filed a Form 13F with the U.S. Securities and Exchange Commission (“SEC”), disclosing its various holdings for the quarter ending September 30, 2013 (the “Third Quarter 13F”). Form 13F is a report of equity holdings that certain investment managers must file with the SEC on a quarterly basis pursuant to the federal securities laws. The SEC makes Forms 13F publicly available on its website.
7. Greenlight did not disclose its position in Micron on the Third Quarter 13F. Rather, in keeping with its efforts to protect the confidentiality of its investing secrets, Greenlight requested Confidential Treatment regarding its Micron stock in a letter to the SEC also dated November 14, 2013 (the “Confidentiality Letter”). In the Confidentiality Letter, Greenlight indicated its intent to continue to build its position in Micron. As noted to the SEC in the Confidentiality Letter, disclosure of Greenlight’s position would materially impair or possibly eliminate Greenlight’s ability to successfully pursue its investment strategy.
8. Prior to the SEC’s receipt of the Confidentialit y Letter, the only persons who lawfully possessed information regarding Greenlight’s position in Micron were persons with a contractual, fiduciary, or other duty to maintain the confidentiality of Greenlight’s position: Greenlight’s employees, counsel, prime and executing brokers and other agents.
The Anonymous Party’s Tortious Conduct and other Breaches of Duty
9. On November 14, 2013 – but before Greenlight ha d delivered the Confidentiality Letter to the SEC – certain internet postings were made on Respondent’s website, seekingalpha.com, by a person writing under the pseudonym “Valuable Insights”. “Valuable Insights” is listed as a “Contributor” to seekingal pha.com and frequently posts to the site.
10. Sometime prior to 9:32 AM on November 14, 2013, Valuable Insights posted “Expect one mega hedge fund rock star to show up as [Micron] holder today, not Ackman, Icahn or Loeb . . . .” Valuable Insights then followed u p that post with two posts giving hints to other users of Seeking Alpha. First, he or she posted “H int…this hedge fund has experience in consolidating (oligopoly) tech industries….” He or she continued: “Hint…would not mention if fund added more than 2 or 3 positions a quarter….” At or around 9:32 AM, after the original and follow-up messages had been posted by Valuable Insights, Seeking Alpha user “Dr. Joseph Haluska” suggested “Einhorn”, referring to Greenlig ht’s President and co-founder, David Einhorn. Valuable Insights responded at 10:15 AM, confirming that Greenlight was the Micron shareholder referred to in its earlier posts with the statement: “The Dr. is in…you heard it here first.”
11. Upon information and belief, Valuable Insights owned shares in Micron at the time of the postings. The trading price for Micron’s shares rose immediately after Valuable Insight’s posting. Because this was the very time frame in which Greenlight was in the process of building its Micron position, it was forced to pay higher prices for its Micron securities.
Greenlight’s Additional Purchases and the Robin Hood Conference
12. From November 14 until November 19, 2013, Greenlight continued to build its position in Micron. On November 21, 2013, David Einhorn gave a presentation in New York City at the Robin Hood Investor Conference. In that presentation, he disclosed that Greenlight
Greenlight Suit PDF