Drug Co. Investors File Class-Action Against SAC

Jan 3 2013 | 12:44pm ET

The Securities and Exchange Commission hasn't sued SAC Capital Advisors yet, but some investors in a pharmaceutical company linked to the insider-trading scandal at the firm aren't waiting.

Six Elan Corp. investors sued the hedge fund late last month, claiming losses due to SAC's allegedly illicit trading in Elan shares. The would-be class-action seeks to represent anyone who traded in Elan American depositary receipts or options from July 21 to 29, 2008.

Elan is one of two companies that former SAC portfolio manager Mathew Martoma is alleged to have illegally traded while at the hedge fund. Martoma was charged in November with getting confidential information about Alzheimer's drug trials and using it to trade in Elan and Wyeth LLC shares.

Prosecutors have called the case against Martoma the "most lucrative" insider-trading scheme in history; they are reportedly seeking Martoma's cooperation in building a case against SAC founder Steven Cohen.

The class-action lawsuit, filed by New York law firm Wohl & Fruchter, names SAC, Cohen, two SAC units, Martoma and Sidney Gilman, Martoma's alleged source. SAC would not comment on the lawsuit but has previously said that it and Cohen acted appropriately.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.