- Earlier this year, there was a proposed merger between the Irish company, Shire, and Illinois-based AbbVie. Bill Singer and other hedge fund owners/managers invested in Shire assuming that the deal would go through.
- On October, the deal was scuttled as AbbVie's board withdrew its support due to new U.S. government rules seeking to strip many of the benefits of tax-inversion mergers.
- When AbbVie decided not to move forward with the deal, Shire's stock dropped by 22% on the news, leading to declining value among hedge fund investors, including Singer, whose fund is worth roughly $25 billion.
Although Singer's latest litigious quest is viewed as over the top in some quarters, his moves are consistent with a history of suing practically every entity that has stood in his way, including former partners, corporations, and even countries (he's currently embroiled in a lawsuit with Argentina that has been going on for decades).
This latest suit may not gain much traction, as his losses were minor compared with other investors and funds. Singer sold early and hard as the news of the deal's demise came through; nonetheless, he may go through the motions and file anyways.