FSA Fines David Einhorn and Greenlight Capital £7.2 Million for Market Abuse Activity

On January 25, the U.K. Financial Services Authority (FSA) decided to fine David Einhorn and his hedge fund Greenlight Capital Inc £7.2 million for engaging in market abuse in relation to an equity fund raising by Punch Taverns Plc raising in 2009. Mr. Einhorn learnt of the proposed fund raising after which he instructed that his fund’s holding in the firm be sold. While the FSA accepted that Mr. Einhorn did not believe the information to be inside information, the FSA considered that his belief was unreasonable and that his failure to identify the information as such was a serious breach of the standard of market conduct expected from someone with his professional experience and of his industry standing. Press Release. Decision Notice for David Einhorn. Decision Notice for Greenlight Capital Inc.