Hedge Fund Manager Targeted Over Stock Deal

Law360, New York (December 22, 2010, 8:51 PM EST) -- A shareholder of Harbinger Group Inc. has brought a derivative suit against hedge fund manager Philip Falcone, alleging he orchestrated an unfair stock exchange between his private investment firm Harbinger Capital Partners LLC and HGI, a publicly traded firm it controls as a majority shareholder.

Plaintiff Alan Kahn filed the suit in the Delaware Chancery Court on Tuesday, taking issue with an agreement by HGI’s board of directors, including Falcone, for the small holding company to acquire some of HCP’s shares of Spectrum Brands Holdings Inc.,...
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