Monday, 27 June 2016
Last updated 2 days ago
Dec 12 2013 | 10:58am ET
A lawyer for SAC Capital Advisors founder Steven Cohen has asked a judge to throw out his ex-wife's explosive racketeering lawsuit, one that accuses her former husband of insider-trading, fraud and money laundering.
U.S. District Judge William Pauley—the second to oversee the four-year-old lawsuit—allowed Patricia Cohen and her fourth lawyer to file an amended complaint for the third time in September. But, according to Martin Klotz, the third time isn't the charm—and the lawsuit should be dismissed for a second time.
Despite the allegations of decades of insider-trading and other malfeasance, the lawsuit remains "basically a matrimonial claim" and does not belong in federal court, Klotz told Pauley at a hearing this week. The Cohens have been divorced for 22 years.
Patricia Cohen alleges that her ex-husband hid a $5.5 million real-estate settlement during their 1991 divorce, and she wants $8.5 million in damages—a far cry from her original demand: a controlling stake in SAC. Of course, that wouldn't be worth very much anymore, following SAC's guilty plea to insider-trading charges and its plan to become a family office. Steven Cohen has not been accused of any wrongdoing.