Why Greenlight capital wants to sue
The court document states that Greenlight Capital began investing in Micron Technology, Inc. (NASDAQ:MU) back in July but did not disclose that stake on its third quarter13F filing with the Securities and Exchange Commission. David Einhorn’s firm goes on to state that it requested “Confidential Treatment” regarding its stake in Micron in a letter to the SEC, which is dated Nov. 14.
In that letter, Greenlight indicated that it would keep building its position in the company. The letter also stated that disclosing the stake in Micron Technology, Inc. (NASDAQ:MU) “would materially impair or possibly eliminate Greenlight’s ability to successfully pursue its investment strategy.”
Before the SEC received that letter in November, the only people who “lawfully possessed” information about the firm’s stake in Micron Technology, Inc. (NASDAQ:MU) were those with a “contractual, fiduciary, or other duty to maintain the confidentiality of Greenlight’s position,” including employees, counsel, prime and executing brokers and other agents.
Greenlight Capital pursues “Valuable Insights” poster
The court document states that David Einhorn’s firm is seeking information about the person who writes under the pseudonym “Valuable Insights” on Seeking Alpha. The person is listed as a contributor and often posts on the blog. The person started posting before 9:32 a.m. Nov. 14 some hints about a firm which was investing in Micron Technology, Inc. (NASDAQ:MU). Then one Seeking Alpha user suggested that it was Einhorn. Valuable Insights responded, confirming that Einhorn’s Greenlight Capital was the firm he was talking about.
The blogger held shares of Micron Technology, Inc. (NASDAQ:MU) at the time of the postings as well, according to the court filing. Shares of the company’s stock rose right after the blogger posted about Einhorn’s stake, thus forcing it “to pay higher prices for its Micron securities.” The firm continued to add to its position through November when Einhorn himself confirmed at the Robin Hood Investor Conference that they were long on Micron.
David Einhorn’s fund Greenlight Capital is working on suing a blogger who posts on Seeking Alpha for disclosing its stake in Micron Technology, Inc. (NASDAQ:MU), according to court documents reviewed by ValueWalk. The documents show that Seeking Alpha has been called as a respondent “so that Greenlight may sue by name” the person who posted about its stake in Micron.
Greenlight Capital protects “valuable trade secrets”
It should be noted that Seeking Alpha itself is not in the crossfire. David Einhorn’s firm basically wants the blog to respond and testify sort of as a witness regarding the name or names of those who posted details on his stake in Micron Technology, Inc. (NASDAQ:MU). According to the document, Greenlight alleges that the blogger “wrongfully disclosed and misappropriated Greenlight’s valuable trade secrets,” “breached confidentiality obligations owed to Greenlight, and / or” “aided and abetted the breach of such confidentiality obligations.
The blogger uses a pseudonym to post on Seeking Alpha, and the blog has thus far refused to reveal the real name to Greenlight. This court document is basically the firm’s attempt to force Seeking Alpha to disclose the name or names.
This story is developing. Check back for more details after we complete our review of the court filing.