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Wohl & Fruchter LLP and Pomerantz Grossman Hufford Dahlstrom & Gross LLP File Consolidated Class Action Complaint on Behalf of Investors in Elan Corporation, plc Alleging Insider Trading by S.A.C. Capital Advisors, L.P. and AffiliatesNEW YORK --(Business Wire)-- The law firms of Wohl & Fruchter LLP and Pomerantz Grossman Hufford Dahlstrom & Gross LLP announce they have filed a consolidated class action complaint (Consolidated Complaint) in the United States District Court for the Southern District of New York on behalf of investors in the American Depositary Receipts (ADRs) of Elan Corporation, plc (Elan) (NYSE: ELN) or options thereon, who traded contemporaneously with and opposite to the defendants during the periods (a) July 1, 2006 through and including July 18, 2008 and (b) July 21, 2008 through and including 4:00 pm EDT on July 29, 2008 (collectively, the "Class Period"). Previously, it was announced that a class action complaint had been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Elan ADRs or call options thereon, and sellers of put options thereon, during the period July 21, 2008 through and including 4:00 pm EDT on July 29, 2008. 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 either of the following:
J. Elazar Fruchter
Robert S. Willoughby Investors who inquire by email are encouraged to include their mailing address, telephone number, and number of securities traded. You can view a copy of the Consolidated Complaint and obtain more information at: www.wohlfruchter.com/cases/sac or www.pomerantzlaw.com. 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. The Consolidated 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 trading Elan ADRs and options while in the possession of material nonpublic information regarding clinical trial results for an Alzheimer's disease drug that was central to Elan's drug development efforts. As alleged in the Consolidated Complaint, beginning in the second half of 2006, 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. From 2006 until mid-July 2008, SAC Capital established large long positions in Elan securities. The Consolidated Complaint further alleges that, beginning in mid-July 2008, Martoma obtained clinical trial results from Gilman, then spoke with Cohen, and over the seven trading days between July 21, 2008 and July 29, 2008, SAC Capital then liquidated its entire holdings of Elan ADRs, worth over $350 million, and acquired a short position in Elan worth over $150 million. 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. 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 (SEC (News - Alert)) 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. Affiliates of SAC Capital have agreed to pay more than $600 million to settle SEC charges related to Martoma's receipt of information from Gilman and subsequent trading in Elan securities while in possession of that information. The plaintiffs are represented by Wohl & Fruchter LLP and Pomerantz Grossman Hufford Dahlstrom & Gross LLP, firms specializing in litigation arising from fraud and other fiduciary breaches by corporate managers, as well as other complex litigation matters.
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