Bloomberg News

Greenlight Drops Seeking Alpha Suit After Blogger Identified (1)

March 24, 2014

Micron Technology Headquarters

Greenlight Capital Inc. said in a November filing with the Securities and Exchange Commission that it purchased 23 million shares of Boise, Idaho-based Micron Technology Inc., a maker of memory chips, in the third quarter. Greenlight had asked that the agency not publicly identify Micron as the investment in question. Photographer: Matthew Staver/Bloomberg

Hedge-fund manager David Einhorn’s Greenlight Capital Inc. said it identified a contributor to the website Seeking Alpha who allegedly disclosed the fund’s stake in Micron Technology (MU:US) Inc. before it was public, the firm said in a statement.

Greenlight “has resolved the matter privately,” Jonathan Gasthalter, a spokesman for the firm, said in an e-mailed statement today. Greenlight also asked a New York state judge to discontinue its lawsuit, according to a court filing.

Greenlight had claimed that the website wrongfully disclosed trade secrets and breached confidentiality provisions. The hedge fund said in a November filing with the Securities and Exchange Commission that it purchased 23 million shares of Boise, Idaho-based Micron, a maker of memory chips, in the third quarter. Greenlight had asked that the agency not publicly identify Micron as the investment in question.

A frequent contributor to the website, identified only as “Valuable Insights,” revealed the investment in a post on Nov. 14, before Greenlight disclosed its position to the SEC, the firm said in a petition filed in February in Manhattan.

“We’re happy Greenlight is no longer pursuing the case,” Eli Hoffmann, editor-in-chief of Seeking Alpha said in an e-mailed statement. “This is not the first demand we have had to disclose pseudonymous authors’ identities; we have yet to disclose author identity in any claim submitted to court.”

The case is In the Matter of the Application of Greenlight Capital Inc., 151327/2014, New York State Supreme Court, New York County (Manhattan).

To contact the reporter on this story: Christie Smythe in Brooklyn at csmythe1@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net David E. Rovella


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Companies Mentioned

  • MU
    (Micron Technology Inc)
    • $33.65 USD
    • -0.61
    • -1.81%
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