SAC Capital Advisors will pay $135m to settle a lawsuit

Gavel Jason Morrison

Billionaire Steven A. Cohen's former hedge fund SAC Capital Advisors will pay $135m to settle a lawsuit by investors in the drugmaker Elan Corp, who said they lost money because of insider trading by one of his portfolio managers.

Reuters reports that the preliminary class-action settlement with SAC, now known as Point72 Asset Management, was filed on Wednesday with the federal court in Manhattan, and requires approval by U.S. District Judge John Koeltl.

It resolves claims over an estimated $275m of illegal trading gains in Elan and the drugmaker Wyeth by Mathew Martoma, who worked at SAC's CR Intrinsic Investors unit, based on tips from a Michigan doctor about a 2008 Alzheimer's drug trial.

To access the complete Reuters article hit the link below:

Cohen's SAC Capital in $135 million settlement with Elan investors

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