Mathew Martoma, the former SAC Capital Advisors portfolio manager accused of insider-trading, is trying to have the case against him cut in half.
Martoma's lawyers have asked U.S. District Judge Paul Gardephe to dismiss allegations related to trading in Elan Corp. American depositary receipts. Since Elan is a foreign corporation whose shares trade abroad, Richard Strassberg argues, the Securities and Exchange Commission is barred from bringing a case about it by a 2010 U.S. Supreme Court decision.
"Mr. Martoma respectfully requests that this court dismiss all charges related to transactions in the securities of Elan Corp., Plc, an Irish corporate with stock publicly traded on the Irish and London stock exchanges." In Morrison v. National Australia Bank, the Supreme Court ruled that U.S. securities laws do not protect foreign investors who buy stocks on overseas exchanges.
Strassberg said he was not seeking the dismissal of the other charges against Martoma, related to trades in New Jersey-based Wyeth LLC, but that he might do so later.
Martoma's trial is set to begin in November.