Saturday, 28 February 2015
Last updated 10 hours ago
Mar 31 2011 | 2:32am ET
An explosive lawsuit accusing SAC Capital Advisors’ Steven Cohen of perjury and insider-trading has been thrown out of court.
U.S. District Judge Richard Holwell, who is separately overseeing the insider-trading trial of Galleon Group founder Raj Rajaratnam, dismissed the complaint, filed by Cohen’s ex-wife, with prejudice, which prevents Patricia Cohen from refilling it.
“Amendment would not be fruitful where plaintiff has already had three opportunities to state a claim,: Holwell ruled.
The judge said that Patricia Cohen, who was divorced from the hedge fund honcho in 1991, took too long to bring the case in 2009, amending it twice. The lawsuit, which once sought at least $100 million and “a substantial, if not controlling” stake in SAC, was eventually changed—three lawyers later—to seek just $8.25 million.
Holwell also ruled that Patricia Cohen made similar claims in a 1991 lawsuit.
“By 1985, Steven had become a very successful trader, but the Cohen’s marriage was far from a success,” the judge wrote. “This is a case where, some 20 years ago, Patricia alleged the same kind of fraud—hiding assets—by the same person—Steven—in the same negotiations at the same time.”
The crux of Patricia Cohen’s claim was that her then-husband hid assets both from her and the courts during their divorce proceedings 20 years ago. But her racketeering lawsuit also accused Steven Cohen of insider-trading in 1985, hiding $10 million in illicit profits earned.
“As we have said from the outset, the allegations by Mr. Cohen’s former spouse are entirely without merit,” SAC spokesman Jonathan Gasthalter said. “We are pleased the complaint has been dismissed.”
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…