Monday, 30 May 2016
Last updated 2 days ago
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.