Akamai Conducts Internal Probe Related To Galleon Case

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; [e-mail]