WSJ – Federal investigators have uncovered a flurry of communications between a Washington research firm and several hedge funds, opening a new front in an insider-trading probe focused on the firm’s 2013 investor alert about a change in government health-care policy.
The Wall Street Journal has previously reported that the Securities and Exchange Commission is investigating whether anyone in the government illegally leaked word of the announcement to Height Securities. Now, the agency is looking at whether hedge funds violated securities rules by trading on the resulting alert to Height Securities’ clients.
