SEC Hits Perry With Merger Arbitrage Fine

Law360, New York (July 22, 2009, 12:20 PM EDT) -- The U.S. Securities and Exchange Commission has fined hedge fund Perry Corp. $150,000 and issued a cease and desist order for not reporting that it had purchased nearly 10 percent of the voting shares in Mylan Laboratories Inc. in 2004 in order to throw its weight behind the drugmaker's failed merger with King Pharmaceuticals Inc.

According to a statement released by the SEC on Tuesday, the day the fine was levied, Perry engaged in a practice called merger arbitrage, in violation of securities laws, because the...
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