Hedge fund Harbinger Capital and its manager Philip Falcone reached a settlement in principle last month to settle with the SEC by agreeing to pay $18 million and have Falcone be banned from the securities industry for two years.  A transcript from the argument on the defendants’ motion to dismiss the SEC’s case, which was recently released on the public docket, sheds some light on the risks and benefits of proceeding with litigation. At the outset of the argument, Judge Crotty appeared sympathetic to the defendants’ argument that there is nothing manipulative or wrong with a “short squeeze” — buying up securities to “squeeze” short sellers into paying more to cover their shorts:
Continue Reading Transcript Shows Risks for Harbinger, Falcone in SEC Case