Bank of America Didn’t ‘Wall-Cross’ Segantii Before Esprit Block

Bank of America Corp. traders working on a 2017 block sale in the shares of fashion retailer Esprit Holdings Ltd. didn’t “wall-cross” Segantii Capital Management before disclosing some information about the potential deal, Hong Kong prosecutors said on Monday.

The prosecutors made the claim at the opening of Segantii’s trial for insider dealing, which relates to a series of trades that took place around US hedge fund firm Lone Pine Capital LLC selling a 10% stake in Esprit in 2017. Wall-crossing is where investors agree not to trade ahead of a transaction in exchange for a bank sharing sensitive information.