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Elan Shareholders File Suit Against SAC Capital

May 15, 2013
Jing Chen

Shareholders of drug maker Elan Corp. claim that Steve Cohen’s SAC Capital Advisors owe them as least $549 million as a result of alleged insider trades.

Bloomberg reported that Elan’s shareholders filed a consolidated complaint Monday in Manhattan federal court stemming from charges against SAC former portfolio manager Mathew Martoma. Martoma, who has denied the charges, was accused of helping SAC earn $276 million using confidential information regarding shares of Elan and Wyeth, another pharmaceutical company.

The total minimum net amount owed to Elan shareholders is $685.6 million, which equates to $549.2 million in profits gained and losses avoided, in addition to $396 million in prejudgment interest. The amount in damages is offset by $259.7 million SAC agreed to disgorge as part of a March settlement with the Securities and Exchange Commission.

The article said that shareholders of Wyeth, now a part of Pfizer, have also filed a lawsuit against SAC.

Based in Stamford, Conn., SAC manages about $15 billion in assets.

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