Pomerantz LLP has filed a consolidated class action complaint in the United States District Court for the Southern District of New York on behalf of investors of American Depositary Receipts ("ADRs") of Elan Corporation, plc ("Elan") or call options during the periods: (a) July 1, 2006 through and including July 18, 2008 and/or (b) July 21, 2008 through and including July 29, 2008 (collectively, the “Class Period”).
The consolidated complaint alleges that S.A.C. Capital Advisors, L.P. ("SAC") 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 non-public information regarding clinical trial results for an Alzheimer’s disease drug that was central to Elan’s drug development efforts.
On August 14,2014, Judge Victor Marrero denied the defendants' motions to dismiss the core claims in the lawsuit against SAC Capital Advisors LP.
The Court agreed with the analysis developed by Pomerantz that the statute of limitations for the insider trading claims under Section 20A was not limited to five years from the date of each transaction as defendants argued, but instead, five years from the date of the last transaction that was part of the insider trading scheme.
Previously, SAC had agreed to resolve claims for a 10-day period in July 2008. However, as a result of the decision, SAC must now answer to claims dating back to 2006. This leaves the door open for a very expansive calculation of the interest to be charged on any damages, and an exponential increase in potential recovery for the class.