In March 2022 The Wall Street Journal reported that federal regulators had opened inquiries into a string of options trades in Activision Blizzard stock placed just days before Microsoft's blockbuster acquisition announcement. The report named David Geffen alongside media titan Barry Diller and Diller's stepson Alex von Furstenberg as subjects of investigations by the Securities and Exchange Commission and the U.S. Department of Justice. According to the coverage, the trades — options purchased roughly three days before Microsoft's disclosure — raised the specter of trading on material, nonpublic information. Diller publicly denied any wrongdoing, calling the trades "simply a lucky bet," and the investigation's public trail produced no immediate indictments tied to the named billionaires. Nevertheless, the episode inserted a rare criminal-sleuthing spotlight into the orbit of Hollywood power players, leaving a reputational cloud and illustrating how the private financial dealings of entertainment moguls can draw the same regulatory scrutiny as Wall Street hedge funds.
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