SEC Probes Hedge Funds' Short-Selling Claims

Law360, New York (May 10, 2007, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission is reportedly investigating claims made in Fairfax Financial Holdings’ $5 billion lawsuit against a slew of hedge funds accused of disparaging the company as part of a short-selling scam.

The lawsuit, filed in June 2006, accuses the funds of disseminating false and misleading information about Fairfax to reap immense profits. The suit also accuses the funds of harassing Fairfax employees and attempting to instigate regulatory investigations into the company.

The funds targeted 28 hedge funds, managers and analysts, including SAC...
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