Galleon Case Could Up The Pressure On Hedge Funds

Law360, New York (November 23, 2009, 6:50 PM EST) -- An insider trading case is just another insider trading case — until it isn't.

The Oct. 16 arrest on conspiracy and insider trading charges of Raj Rajaratnam, founder of the Galleon Group of hedge funds, forced several hedge funds to review their compliance policies, several attorneys said. The arrests also provided fodder for those seeking to regulate the alternative investment vehicles, the attorneys added.

“This does not bode well for hedge funds,” said Jamie Wareham, the chair of the litigation department at Paul Hastings Janofsky &...
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