In May 2017, Pomerantz, as Co-Lead Counsel, achieved final approval of a $135 million recovery in this securities class action that arose from what has been called the most profitable insider trading scheme in U.S. history. After nearly four years of vigorous litigation, billionaire Steven A. Cohen's former hedge fund, S.A.C. Capital Advisors LP (“SAC”), agreed to settle the lawsuit by investors in the drug maker Elan Corp, who alleged they lost money because of insider trading by one of his portfolio managers.
Allegations in the case included that SAC and related parties traded 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 with the SEC to resolve claims for a 10-day period in August 2008. Pomerantz and Co-Counsel’s efforts forced SAC to address claims dating back to 2006, including paying interest on the damages incurred.