Solengo Sues Dealbreaker

Did you know POS Legal Action is an anagram of Solengo Capital?

Solengo Capital Advisors ULC, a hedge fund company formed by a trader involved in one of the largest hedge-fund collapses ever, has sued a Web site for posting a copy of Solengo’s investor prospectus.
The copyright lawsuit, filed in federal court in Manhattan, alleges the prospectus was posted in its entirety on Dealbreaker.com on Wednesday. The Web site’s publisher and editors refused to remove the document.
The Greenwich, Conn.-based company’s complaint alleges the document was stamped “confidential” and contains the venture’s planned structure, trading and risk management platforms, offering information and biographies of its founders.
“This proprietary information is integral to Solengo’s ability to gain an edge over competitors, standing in the marketplace and appeal to potential investors,” the lawsuit says. (Hey, they know how to use stock photos! Let’s invest.)
Elizabeth Spiers, Dealbreaker’s publisher and founder; John Carney, the Web site’s editor in chief; and Bess Levin, a contributing editor, were all named as defendants. (Muffy??)
Calls seeking comment from Spiers and the New York-based Web site’s general manager weren’t immediately returned Monday. A comment on the Web site attributed to Levin said that “writing ‘confidential’ on a document does not obligate DealBreaker or anyone else to keep your secrets secret.”
Solengo was founded by Brian Hunter, a one-time star energy trader at shuttered hedge fund Amaranth Advisors LLC. Amaranth lost more than $6 billion in September, making it one of the largest hedge fund collapses in history.

Naked Shorts has a PDF of the Legal Fun. One of Greg’s readers points out that Solengo’s lawyers, Kobre & Kim, are having some trouble with that principal/principle thing.

Posted by on April 3rd, 2007 at 11:54 am


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