A short-swing sale case against a hedge fund shop and involving Invesco [profile] stock could be heading to the highest court in the land.

Today three judges of the U.S. Second Circuit Court of Appeals in New York City upheld a federal district judge's decision to allow a short-swing sale case against Phillip Goldstein's Bulldog Investors to continue. Richard Cohen, a lawyer for Bulldog, told the Wall Street Journal that the Saddlebrook, New Jersey-based hedge fund shop plans to appeal the case yet again.

"Hopefully, we're going to get a different decision out of the U.S. Supreme Court," Cohen told the pub.

An investor who owns more than 10 percent of a company's stock must report to the SEC, and the short-swing sale rule bans that investor from profiting from the purchase or sale of that stock for six months.

In this suit, an Invesco mutual fund shareholder sued Bulldog, alleging short-swing sales, and Bulldog countered that the shareholder didn't have standing to file the suit. The district court and the circuit court both disagreed, siding with the Invesco mutual fund shareholder and permitting the suit to proceed. 

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE