Sinking Galleon Group Latches On to Gibson Dunn

Galleon Group is going down and Gibson, Dunn & Crutcher is along for the ride. The Am Law Daily has learned that securities enforcement co-chair Barry Goldsmith in Washington, D.C., is advising on the closure of the hedge fund, prompted by the insider trading charges against billionaire founder and Gibson Dunn client Raj Rajaratnam on Friday. Gibson Dunn white-collar defense co-chair Jim Walden is also representing general partner Rajaratnam. Neither Goldsmith nor Walden responded to requests for comment and a Gibson Dunn spokeswoman denied that the firm was advising Galleon Management itself. In a letter to investors on Tuesday, Rajaratnam emphasized the liquidity of his fund but stated that the time had come to scuttle Galleon. It's a process that hedge fund advisors say Rajaratnam will handle with U.S. and offshore counsel.

Sinking Galleon Group Latches On to Gibson Dunn Thu, Oct 22, 2009