Peter R. Pendergast Defends Investment Manager in Insider Trading Complaint Described in Recent New York Times Article
The complaint challenges the almost universal and generally legitimate practice of institutional investors using "expert networks" to obtain information relevant to investment decisions. In this case, the firm’s client, a hedge fund manager, spoke with a
Columbia University research professor who was testing a particular drug on
patients with a rare kidney disease. The drug showed enormous potential and
investments were made in Questcor, the company producing it.
Peter Pendergast, a partner in the firm’s
Litigation Practice Group and a well-known attorney in the field of securities
enforcement, arbitration, and litigation, defended the manager on the basis, among other things, that the information was not material or confidential, and was already in the public domain at the time the investment was made.
To read more about
this case and the complete New York Times article, please click the link below.