InfoUSA Reports Cardinal to SEC
InfoUSA asked the Securities and Exchange Commission to look into the trading practices of hedge fund Cardinal Capital Management LLC, the Omaha, NE, data giant said last week.The request was made in a Feb. 22 letter to the SEC. According to infoUSA, Cardinal has been in possession of non-public confidential information since Oct. 3 that infoUSA provided pursuant to a confidentiality agreement.
InfoUSA said that Cardinal filed a 13D/A disclosing that it had purchased infoUSA stock while in possession of this information on Feb. 9.
Also on Friday, the Associated Press reported that Cardinal Value Equity Partners LP filed a complaint Feb. 22 in Delaware's Court of Chancery suing infoUSA CEO Vin Gupta and alleging a breach of fiduciary duties owed to shareholders. The complaint is under seal.
InfoUSA released this statement in response to the suit: "InfoUSA has received a copy of the complaint filed by Cardinal in the Delaware Chancery Court. The complaint relates to events occurring in 2005 and prior years which have been publicly used by Cardinal and others to further their own short-term interests. The company has addressed these matters in its public disclosure documents, views the allegations of the complaint to be without merit, and intends to vigorously defend itself in court."
Cardinal Capital Management, Greenwich, CT, owns 6.1 percent of infoUSA's stock, and Cardinal Value owns 0.29 percent, according to the 13D/A.
Cardinal Capital Management did not return a phone call or e-mail for comment yesterday.
