NEW YORK -(Dow Jones)- Akamai Technologies Inc. (AKAM) has opened an internal
investigation into the allegations that an executive at the company provided
insider information to those involved in the Galleon Group case.
Akamai Chief Executive
Paul Sagan said the company has not been notified by
any law enforcement entity of any wrongdoing, and has offered its assistance to
authorities.
"If we are able to determine that someone at Akamai has done something wrong,
we will take swift and appropriate action," he said during a conference call
late Wednesday.
Federal investigators have accused an unidentified Akamai executive of passing
on inside information regarding the company's quarterly results released in July
2008 to Danielle Chiesi, an employee of hedge-fund New Castle Partners LLC.
Chiesi then is accused of passing the information to Galleon Group founder Raj
Rajaratnam, who allegedly provided her with information regarding Advanced Micro
Devices Inc. (AMD) and other public companies, the government said.
Akamai shares recently rose 8.1% to $21.80 premarket after the company, which
provides software to help deliver media over the Internet, beat its own third-
quarter profit and revenue forecasts.
-By Jerry A. DiColo; Dow Jones Newswires; 212-416-2155; jerry.dicolo@
dowjones.com
(END) Dow Jones Newswires
10-29-090839ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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