Bloomberg – A Biovail Corp. lawsuit against SAC Capital Management LLC was thrown out by a New Jersey judge for failing to state a claim.
Biovail accused hedge funds including SAC and Sigma Capital Management of conspiring in a short-selling scheme to drive down the drugmaker’s share price. The Mississauga, Ontario-based company also claimed Gradient Analytics Inc. helped the hedge funds by writing false reports about Biovail.
“Biovail fails to elicit any specific damages, and instead relies upon a general diminution theory,” New Jersey Superior Court Judge Donald Goldman wrote in a 51-page ruling released today. “Biovail’s claims must be dismissed.”