Hedge fund ‘owes Elan shareholders at least $685m’

SAC Capital Advisors, the hedge fund firm founded by Steven Cohen, owes Elan shareholders at least $685.6m (€533.3m) as a result of alleged insider trades in the drugmaker’s stock, investors said in a lawsuit.

The Elan shareholders’ claim came in a consolidated complaint filed on May 13 in Manhattan federal court against SAC and Mr Cohen.

The suit stems from federal criminal charges against Mathew Martoma, a former SAC Capital portfolio manager accused of using inside information to help SAC make $276m on shares of Elan and Wyeth. Mr Martoma has denied the charges.