MarketWatch – Perry Capital said on Wednesday that it could be sued by the Securities and Exchange Commission over the $10 billion hedge-fund firm’s trading in shares of drugmaker Mylan Laboratories Inc.
SEC staff recently sent a so-called Wells notice to New York-based Perry and the firm’s founder, Richard Perry, a former Goldman Sachs (GS: GS131.97, -0.06, 0.0%) investment banker, according to a statement issued by a Perry spokesman.
Carl Berg, a portfolio manager at Perry, also received a similar notice, which says that SEC staffers are recommending the agency take civil legal action and gives recipients a chance to respond.
SEC staff is concerned that Perry Capital’s Mylan (MYL: MYL20.50, -0.36, -1.7%) trading may have violated certain provisions of federal securities laws, including Sections 10(b) and 13(d) of the Securities Exchange Act of 1934, Perry said in its statement. Those sections of the law apply to fraud and to holders of more than 5% of a company’s securities.
The hedge fund asserted that it has done nothing wrong and plans to respond to regulators.
