Leon Cooperman, the hedge fund billionaire accused of insider trading by the U.S. Securities and Exchange Commission, may turn to his investors as a last resort to help defray the costs of his legal battle with the government.
Cooperman’s Omega Advisors is withholding less than 1 percent of assets being redeemed to cover legal costs if they far exceed what he’s expecting, according to investors who asked not to be identified because the firm is private. He told clients he anticipates his insurance will cover all the expenses, and if necessary he’ll spend some of his own money.
Insurance policies will usually cover defense and settlement costs when a money manager is accused of wrongdoing, said Bill Passannante, co-chair of the insurance recovery group at law firm Anderson Kill. In rare cases, the government has stipulated that a settlement must be paid out of the accused’s own pocket rather than with insurance money.
To read the full article: Cooperman Clients May Get Stuck With Part of Omega’s Legal Bill