Spy Wars? Elliott Management Corp Sues Cedar Hill Capital Partners LLC, Alleging "Corporate Espionage"
Elliott Management Corp has sued rival hedge fund Cedar Hill Capital Partners LLC, alleging that the rival company "misappropriated" proprietary software that cost Elliott Management Corp millions of dollars and years to develop.
Elliott maintains that Cedar Hill engaged in a scheme to "literally steal" the software using the help of a rogue employee and consultant.
Elliott Management, according to a complaint filed in the U.S. District Court in Manhattan, became aware that their multi-million dollar software had allegedly been pilfered and was now in the hands of a rival company.
The software is used to analyze CDOs (Collateralized Debt Obligations) and their underlying loans in order to give Elliott Management an edge on its competitors.
According to Elliott Management, the scheme was hatched and the software was eventually "misappropriated" in October of 2007.
The lawsuit seeks damages (not sure exactly how much) and seeks to prevent Cedar Hill from "further wrongfully exploiting its confidential and proprietary information".
Elliott Management has over $10 billion dollars in total investments, so I am assuming that they will go the distance in terms of pursuing Cedar Hill.
Cedar Hill hasn't yet responded to the allegations.
Filed under: Hedge Fund News | Stock Market Scandals