The US Securities & Exchange Commission (SEC) is reported to be investigating Pirate Capital LLC, over allegations that it violated securities laws by failing to disclose it was selling stocks.
The Wall Street Journal reported that the investigation of Pirate Capital is over whether they broke regulatory rules that require investors owning stakes equal to 5 per cent or more of a company to disclose when they materially raise or lower their ownership stakes. In this case the hedge fund manager failed to disclose that it was selling shares in the owner of Outback Steakhouses.
Pirate Capital pursues an activist strategy.