Deals
Hedge Funds Seek to Trade in Comfort as Bankruptcy Insiders
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Hedge funds that invest in bankrupt companies are demanding protection from insider-trading lawsuits before agreeing to take part in restructuring talks -- a reaction by the industry’s top performers to an obscure court decision involving the 2008 collapse of Washington Mutual Inc.
The ruling by a Delaware federal judge let shareholders pursue allegations that four hedge funds involved in the bankruptcy traded on inside information about talks between WaMu, JPMorgan Chase & Co. and the Federal Deposit Insurance Corp.