(Reuters) 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 portfolio managers.
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.
