Stock Investors May Want SAC Deal Blocked

Nov 4 2013 | 12:12pm ET

Investors in two pharmaceutical companies whose shares were allegedly illegally traded by SAC Capital Advisors have asked a federal judge to reject any deal that doesn't include an admission of the wrongdoing they have alleged.

SAC has reached a settlement agreement with federal prosecutors that will be announced later today. Reports of the firm's negotiations with the U.S. Attorney's office in Manhattan indicated that SAC was loathe to admit wrongdoing in the case of its trading in Elan Corp. and Wyeth LLC shares, as former portfolio manager Mathew Martoma, who made the trades, has pleaded not guilty and is set to go on trial next year.

The plea agreement includes at least one securities-fraud guilty plea, but it is not yet clear what it covers. And if it doesn't cover Elan and Wyeth, the lawyers leading the class-action lawsuits against SAC want it junked.

"The plea being negotiated will allow defendants to plead guilty and pay a fine in excess of $1 billion without admitting liability for insider trading in Elan or Wyeth," plaintiffs lawyer Ethan Wohl wrote in a Friday court filing to U.S. District Judge Laura Taylor Swain, who is overseeing the SAC case. "A plea agreement on those terms, if tendered to the court, should be rejected."

Wohl wrote that Elan and Wyeth investors are "crime victims" of SAC's alleged fraud.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR