|[December 21, 2012]
The Law Firm of Wohl & Fruchter LLP Files Class Action on Behalf of Investors in Elan Corporation, plc Arising from Insider Trading by S.A.C. Capital Advisors, L.P. and Affiliates
NEW YORK --(Business Wire)--
The law firm of Wohl & Fruchter LLP announces that it has filed a class
action lawsuit in the United States District Court for the Southern
District of New York on behalf of investors who purchased American
Depositary Receipts (ADRs) of Elan Corporation, plc (Elan) (NYSE: ELN)
or call options thereon, or who sold put options on Elan ADRs during the
period from July 21, 2008 through and including 4:00 pm EDT on July 29,
2008 (the Class Period).
If you traded Elan securities during the Class Period, and wish to serve
as lead plaintiff, you must move the Court no later than 60 days from
today. If you wish to discuss this action, determine whether you are a
class member, or have any questions concerning this notice or your
rights, please contact plaintiffs' counsel, Ethan Wohl, at 866 582 8140
or 212 758 4000, or via email at firstname.lastname@example.org.
Any member of the proposed class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
You can view a copy of the complaint or join this class action online
The complaint alleges that S.A.C. Capital Advisors, L.P. (SAC Capital)
and related parties, including its founder and chief executive officer,
Steven Cohen, engaged in illegal insider trading in violation of the
Securities Exchange Act of 1934 by selling Elan ADRs and trading options
ahead of adverse clinical trial results for an Alzheimer's disease drug
that was central to Elan's drug development efforts.
As alleged in the complaint, a portfolio manager at SAC Capital, Mathew
Martoma, obtained inside information from the medical doctor who chaired
the drug's safety monitoring committee, Sidney Gilman. The complaint
further alleges that after obtaining the clinical trial results from
Gilman, Martoma spoke with Cohen, and over the following seven trading
days, SAC Capital then liquidated its entire holding of Elan ADRs, worth
over $350 million, and acquired a short position in Elan amounting to
approximately 4.5 million ADRs.
When the results of the clinical trial were publicly disclosed after
hours on July 29, 2008, Elan's ADRs dropped sharply in value, closing
the next day down 41.8% from the 4:00 pm closing price on July 29, 2008,
prior to the public disclosure. According to the complaint, by
liquidating its long position and selling short in advance of the
disclosure of the disappointing clinical trial results, SAC Capital
avoided losses and obtained gains of at least $220 million on its
investments in Elan.
Martoma is presently the subject of a criminal prosecution for his
alleged role in the insider trading of Elan securities. Gilman has
settled civil charges brought by the Securities and Exchange Commission
arising out of his conduct, agreed to pay more than $200,000 in
disgorgement, and has entered into a nonprosecution agreement with the
U.S. Attorney's office.
The plaintiffs are represented by Wohl & Fruchter LLP, a firm
specializing in litigation arising from fraud and other fiduciary
breaches by corporate managers, as well as other complex litigation
matters. Please visit our website, www.wohlfruchter.com,
to learn more about our Firm, or contact one of our partners.
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