The article discussed a suit filed by Crum & Foster Holdings Corp., and it’s parent company, Fairfax Financial Holdings Limited of Toronto against S.A.C. Capital Management. The complaint alleges that S.A.C. drove to Fairfax’s stock price so they could profit by short-selling the stock.
Carlis said a long-term run up in Fairfax’s stock price could make it difficult to prove damages beyond the early period when the stock slumped. He added, "Manipulation is difficult to prove. And if the stock ultimately went up, any damages would likely be limited to the period in which the price had gone down."