Intermune Buy
The three men allegedly bought shares of Intermune based on the information gleaned from the hacked data. Though the deal didn’t close, they still made money as shares rose on media reports that the company was seeking a tie-up, the U.S. said. Intermune was ultimately purchased by Roche AG. Cravath advised Intermune on the deal.
In another deal, the group allegedly bought shares in chipmaker Altera Corp. after Intel had retained one of the law firms to advise on an acquisition. They scored $1.4 million in profits on the trade amid media reports of the pending deal, and sold their shares before it was publicly announced, according to the indictment. Weil Gotshal was one of the law firms advising Intel on the deal.
Using information gleaned from a second law firm, the trio also bought shares of Borderfree, an online commerce site that was an acquisition target of Pitney Bowes, the U.S. said. They made a profit of $841,000 on the trades after the deal was announced on May 18, 2015, according to the indictment.
Prior to the Borderfree takeover, Hong and Chin bought so much of the company’s stock that on certain days the two accounted for 25 percent or more of the company’s trading volume, according to the SEC complaint.
This article was provided by Bloomberg News.