The CSX Decision Regarding Beneficial Ownership And Group Formation

Extract

---

The CSX Decision Regarding Beneficial Ownership And Group Formation

On June 11, 2008, Judge Lewis A. Kaplan of the U.S. District

Court for the Southern District of New York ruled in CSX

Corporation v. The Children's Investment Fund Management

(UK) LLP that:

a hedge fund that entered into cash-settled total return

equity swaps ("TRSs") as the total return receiver,

or "long party," should be deemed the

"beneficial owner" of the underlying common stock

under Rule 13d-3(b) of the Securities Exchange Act of 1934

(the "Exchange Act") because, on the facts of the

case, the court determined that the fund used the TRSs as

part of a plan or scheme to evade the reporting requirements

of the Excha...

See the full content of this document

---