Insider Case by S.E.C. Is a Step Removed From Herbalife Itself

The hedge fund world often finds itself at the center of insider trading investigations after profiting from corporate secrets. But for the first time, regulators are saying that a hedge fund’s investment plan itself can be the secret. Stretching the boundaries of insider trading law, the Securities and Exchange Commission on Tuesday accused two men of possessing confidential information about plans by Pershing Square Capital Management to attack Herbalife. One of the men, Filip Szymik, settled the case; his friend and co-defendant, Jordan Peixoto, did not. More in the New York Times here.