Elan investors sue SAC over insider-trading losses
FORMER investors in Elan and Wyeth have been give the go-ahead by a US court to pursue a case against SAC Capital Advisors, the former hedge-fund that became mired in an insider trading scandal.
The suits relate to trading in Elan and Wyeth shares by former SAC fund manager Mathew Martoma on tips about an Alzheimer's drug, allowing the firm to gain $555m (€415m) in profits and avoid losses, according to the ruling. Martoma was convicted in February of securities fraud.
SAC's request to dismiss the claims by investors in Elan and Wyeth, was denied by US District Judge Victor Marrero in Manhattan.
The judge did narrow the litigation by reducing the range of trade dates that apply to one of three claims in the case.