Crossing the line

The insider trading scandal has made hedge funds & their investors jumpy, as the SEC broadens its probe.

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By Britt Erica Tunick

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As soon as news broke of a lawsuit alleging that Harbinger Capital Partners’ January 2007 acquisition of Applica succeeded, at least in part, because of its receipt of “nonpublic information” about a rival bid, Harbinger began damage control.

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