(Adds Cohen's age and net worth, settlement details, case
By Jonathan Stempel and Nate Raymond
NEW YORK Nov 30 Billionaire Steven A. Cohen's
former hedge fund SAC Capital Advisors LP will pay $135 million
to settle a lawsuit by investors in the drugmaker Elan Corp, who
said they lost money because of insider trading by one of his
The preliminary class-action settlement with SAC, now known
as Point72 Asset Management LP, 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 $275 million 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.
"We are pleased to have resolved this matter and close the
books on this chapter of SAC-era litigation," Point72 spokesman
Mark Herr said in a statement.
SAC pleaded guilty to fraud in 2013 and paid $1.8 billion in
criminal and civil settlements with U.S. authorities. It settled
with Wyeth shareholders for $10 million last December.
Martoma, meanwhile, is appealing his February 2014 insider
trading conviction, while he serves a nine-year prison term.
Cohen, 60, was not criminally charged, but in January
accepted a two-year ban on managing money for outside investors
to end a U.S. Securities and Exchange Commission civil probe
into his supervision of Martoma.
That ban ends on Jan. 1, 2018, and no fine was imposed.
Point72 is based in Stamford, Connecticut.
SAC and Cohen did not admit wrongdoing in settling with the
former Elan investors, including purchasers of its American
depositary receipts and stock options.
Perrigo Co bought Elan in 2013, while Pfizer Inc
bought Wyeth in 2009.
Lawyers for the Elan investors plan to seek up to $35.1
million for legal fees and $2.8 million for costs, which would
be drawn from the $135 million settlement, court papers show.
Cohen can donate leftover settlement funds to charities he
chooses, with the consent of the Elan investors. He is worth $13
billion, Forbes magazine said.
The case is Kaplan et al v SAC Capital Advisors LP et al,
U.S. District Court, Southern District of New York, No.
(Reporting by Jonathan Stempel and Nate Raymond in New York;
editing by G Crosse, Grant McCool)