A major law firm that represents a large number of hedge funds has fired off a client alert warning that the Securities & Exchange Commission has stepped up its scrutiny of an arcane rule that results in several settlements each year.
Already this year, UBS O’Connor and Ardsley Partners have agreed to settlements with the regulator over the rule, while in prior years some of the most well-known hedge fund firms have settled similar charges, including Appaloosa Management, Harbinger Capital, Carlson Capital, Level Global and Bain Capital’s...