Judge reverses course in seeking Bloomberg leaks

A U.S. judge reversed course on Friday and narrowed an ongoing investigation seeking the identities of sources who leaked confidential information about bankrupt mining company Molycorp to reporters at Bloomberg.

Tom Hals of Reuters writes, “U.S. Bankruptcy Judge Christopher Sontchi said he realized he went too far in trying to protect a confidential mediation process by ordering last week that 123 people disclose their communications with Bloomberg regarding Molycorp.

“‘I think that this order as currently drafted is overly broad and needs to be narrowed,’ Sontchi said after a hearing in Wilmington, Delaware.

“While none of the lawyers, bankers and advisers covered by the order objected, Bloomberg has argued it inhibited their free speech and would discourage people from speaking to its reporters.

“A Bloomberg spokesman was not immediately available for comment.

“The original order required declarations describing all contacts with Bloomberg reporters over the prior 60 days. Sontchi said that should be narrowed to require people to disclose what they know about leaks reported in three articles.”

Read more here.

Bloomberg editor in chief John Micklethwait issued the following statement:

“By reconsidering its prior decision, the court recognized that there are countervailing constitutional interests that would be poorly served by unnecessarily compelling confidential sources to expose their contacts with the media. When the press’s ability to talk to sources confidentially is restricted, transparency is lost and the public is deprived of news reporting on matters of significant public interest. We are encouraged by today’s ruling — it goes a long way in allowing the press to do its job.”