Tuesday, 30 August 2016
Last updated 1 hour ago
Jun 4 2013 | 11:40am ET
A longtime SAC Capital Advisors adversary is kicking the $15 billion hedge fund while it's down.
Fairfax Financial Holdings has asked a New Jersey appeals court to reinstate its racketeering lawsuit against the hedge fund, which is facing billions in redemptions and possible criminal charges stemming from a separate investigation into insider-trading. SAC won the dismissal almost two years after a lower court found there was "no direct evidence of any sort of conspiracy involving SAC to take down Fairfax."
The Canadian insurer had sued a raft of hedge funds, alleging they conspired with brokerage Morgan Keegan to drive the company's share price down. All but one of the hedge funds won dismissals of the claims against them.
In its appeal, Fairfax said that the lower-court judge erred in dismissing based on SAC's trading records, arguing that "hotly contested questions of material fact" are the province of a jury.
"The trial court thoroughly rejected Fairfax's claims, and we are confident its decision will be upheld," SAC said.