A tiny investor relations firm, Market Street Partners, is smack in the middle of the Galleon Group hedge fund insider trading scandal, reports Reuters.
Prosecutors allege that before MSP client, Google, announced its second-quarter earnings in July 2007, a tipster from MSP told Galleon that GOOG would announce earnings below market expectations.
Based on the tip, Galleon purchased about 1,000 put options in Google in July 2007, and shorted about 25,000 shares of the stock. The trade brought the hedge fund some $9 million in profits.
The MSP employee has not been identified.
The all female senior team at Market Street includes:
Carolyn Bass
Co-Founder, Partner
JoAnn Horne
Co-Founder, Partner
Karen Haus-Moran
Senior Vice President
Linda Rothemund
Vice President
Expect trading to be scrutinized of other Market Street clients that include:
Acquicor Technology
Actuate
Allegis
Ariba
Banks.com Inc.
Beringer Wine Estates
BlueCoat Systems
Brooke Capital Corp.
Brooke Corporation
Brookstone
Calix
Chordiant
Clarent
CMC Industries
Com21
CopperCom
Corio
CoSine
Cygent
EFI
Electronics for Imaging
Emerald Solutions
Equinix
Flycast Communications
Golden State Vintners
HCL Technologies
Irvine Sensors
iVita
Jamba Juice
Jazz Technologies
KANA Software
Lillian Vernon
Metro One Telecom
NetSuite
Network Peripherals
Niku
Nutraceutical Int.
Omniture
Opsware (Loudcloud)
Orion Energy Systems
Plumtree
QMS
QRS Corporation
Quality Semiconductor
Reel.com
Resonate
Sagent Technology
Sicor
Sonic Solutions
Spansion
Starbase
Sunglasses Hut
SupportSoft
Sunrise Telecom
Taleo
Tandycrafts
Terremark Worldwide
Trimble Navigation
USCS International
UTStarcom
Visual Sciences
Watson Pharmaceutical
WebSideStory
WorkStream Inc.
MPS lists crisis communications as one of their specialties. This should be a pretty good test to see if they are any good at it. The early over/under line probably is at their losing 12 clients because of the scandal.
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