SAC, Founder Face Investor Suit Over Insider Trading Scandal

Law360, New York (January 2, 2013, 6:51 PM EST) -- A putative class of Elan Corp. shareholders has sued Steven A. Cohen and his hedge fund SAC Capital Advisors LP over an alleged $276 million insider trading scheme involving shares of the drug giant’s stock, marking the first private suit to emerge from the tipping scandal.

Six Elan investors allege in the Dec. 21 complaint that Cohen failed to properly supervise Mathew Martoma, a former SAC portfolio manager accused in November of netting the hedge fund $276 million in profits and avoided losses by trading on...
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