Friday, 24 February 2017
Last updated 13 min ago
Jan 3 2013 | 11:44am 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.