Pharmaceutical Co. Settles SAC Lawsuit

Nov 10 2010 | 4:08am ET

The long-running, often nasty, sometime vexatious legal battle between SAC Capital Advisors and Canadian pharmaceutical company Biovail is finally at an end.

Valeant Pharmaceuticals, which merged with Biovail in June, agreed to pay US$10 million to SAC to settle a countersuit filed by the hedge fund in February. Biovail's own lawsuit against SAC—which the Stamford, Conn.-based firm called "vexatious"—was dismissed last year.

Another lawsuit against SAC, filed by Biovail shareholders, met the same fate.

Valeant's announcement of the settlement, which came alongside its quarterly loss announcement, also included the closest thing to an apology that SAC is likely to get.

"The initiation of litigation against SAC and others in 2006 by Biovail's management at the time was regrettable," CEO J. Michael Pearson said. "We would like to put this incident behind us."

Valeant also settled a lawsuit filed by Gradient Analytics, a research firm and one of SAC's co-defendants in the Biovail litigation. SAC and Gradient were accused of conspiring to drive the company's stock price down.

The US$10 million will cover a "portion" of SAC's legal expenses in the case. Still, the hedge fund said it was "pleased with this outcome."

"SAC continues to believe that Biovail's lawsuit and the media campaign that accompanied it were designed to distract critics from the company's own conduct," the firm said.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note