France: GLG Discloses Dismissal of Appeal in Insider Trading Case

London hedge fund group GLG Partners has lost an appeal against a €1.5m ($1.9m) fine by French regulator Autorité des Marchés Financiers for insider trading in Vivendi shares. GLG is still pursuing a separate appeal on the Vivendi fine to the Conseil d’Etat, the highest administrative court, the Financial Times reports.

In a US regulatory filing, GLG said that the Court of Appeals in Paris had dismissed its appeal in November.  GLG provided no update on its appeal to the Conseil d’Etat.

The FT reports that GLG was the first hedge fund to be fined by the AMF, being hit for €1.2m for “trading abuses” ahead of an Alcatel convertible bond issue in 2002. Deutsche Bank, manager of the issue, was also fined €300,000.

GLG was also the first hedge fund to be fined by Britain’s Financial Services Authority, being hit with a £750,000 fine for “market abuse and breaching the watchdog’s principles” while trading in Japan’s Sumitomo in 2006.

Read the FT article