SAN FRANCISCO--(Lieff Cabraser Heimann & Bernstein, LLP announces that class action lawsuits have been brought on behalf of all persons who purchased or otherwise acquired the American Depositary Shares (“ADRs”), call options, and/or sold the put options of Elan Corporation, plc (“Elan”) (NYSE: ELN) between July 21, 2008 and 4:00 pm EDT on July 29, 2008 (“Class Period”). If you purchased or otherwise acquired the ADRs, call options, and/or sold the put options of Elan during the Class Period, you may move the Court for appointment as lead plaintiff by no later than February 19, 2013. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.)--The law firm of
Background on the Securities Class Litigation
The actions allege that, during the Class Period, S.A.C. Capital Advisors, L.P. ("SAC Capital"), CR Intrinsic Investors (“CR Intrinsic”), a wholly-owned subsidiary of SAC Capital, and other related parties, including SAC Capital founder and CEO, Steven Cohen, engaged in illegal insider trading in violation of the Securities Exchange Act of 1934 by selling Elan ADRs and trading options prior to the disclosure of adverse clinical trial results for an Alzheimer’s disease drug that was central to Elan’s drug development efforts. Defendants received over $220 million in illegal profits and avoided significant losses by trading on material non-public information.
According to the complaints, a portfolio manager at CR Intrinsic, Mathew Martoma, received inside information from the medical doctor who chaired the drug’s safety monitoring committee, Sidney Gilman. The complaints further allege that Martoma subsequently shared this information with Cohen, and over the following seven trading days, SAC Capital and Martoma liquidated their entire holdings of Elan ADRs, worth over $365 million, and acquired short positions in Elan, and eventually sold over $500 million in Elan securities before the disclosure of adverse results from the clinical trial.
On July 29, 2008, after the close of trading, the adverse results of the clinical trial were publicly disclosed. Upon this news, Elan’s ADRs declined 41.8% the next day.
According to the complaint, 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, agreed to disgorge more than $200,000, and entered into a non-prosecution agreement with the U.S. Attorney’s office for his role in the illegal scheme.
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