Hedge fund activists are known for dishing out, and receiving in turn, some pretty harsh and uncompromising language. You’d have thought Standard General would know this, having worked with and then scorned the inimitable Dov Charney. But, apparently, you can still hurt SG’s feelings, at least legally.
New York-based hedge fund Standard General LP sued Tusk Strategies Tuesday in Manhattan federal court, accusing the political consulting firm, of “blanketing the media with false and misleading proxy materials” on behalf of a “secret client….”
An employee of Tusk sent an email to news outlets Friday to try to get them to write stories about a lawsuit in which Standard General is accused of improperly profiting from short-term trades, the hedge fund said. In the lawsuit, filed by an investor, Standard General and its chairman, Soohyung Kim, were accused of making almost $800,000 by selling Tegna stock while the proxy fight was “raging….”
“As of the date of this complaint, the proxy contest hangs in the balance,” Standard General said in its complaint. “Tusk’s reasons for pursuing this malicious and defamatory article are obvious: a story accusing Standard General and Mr. Kim of a crime would likely be a knockout blow to Standard General’s prospects in the proxy contest.”