Law Firm Eyes Class-Action Against SAC

Jan 25 2013 | 12:33pm ET

Add another black cloud to the storm encircling SAC Capital Advisors.

A Delaware law firm is recruiting SAC investors to join a potential class-action lawsuit against the hedge fund, it said on its Web site. Chimicles & Tikellis told would-be plaintiffs that it is "actively investigating a proposed investor lawsuit against SAC Capital" over "mismanagement of the limited partnership and certain hedge funds."

The threat is, perhaps, the least of SAC's worries, as it faces a likely Securities and Exchange Commission enforcement action and a deepening probe into alleged insider-trading both of the firm and of founder Steven Cohen. A former portfolio manager has pleaded not guilty to the crime, but plenty of others with SAC ties have done the opposite and are cooperating with prosecutors.

SAC has denied any wrongdoing and dismissed the potential class-action.

"This is nothing more than a law firm trolling for clients for a non-existent claim that if initiated would have no merit," a firm spokesman told the New York Post.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.