According to Dealbooks’ Andrew Ross Sorkin and Peter Lattman
at the center of the government’s insider trading case against a former
portfolio manager at SAC Capital Advisors is a trade that directly involves
Steven A. Cohen, the billionaire owner of the fund.
New details about the case have emerged that could cast
doubt on the way that trade has been portrayed by the authorities, suggesting a
possible line of defense for the portfolio manager and raising questions about
whether the government will be able to build a case against Mr. Cohen, who has
long been in the cross hairs of an investigation for insider trading on Wall
Street.
Federal prosecutors have claimed that SAC dumped millions of
shares of two pharmaceutical companies in 2008 after the former employee,
Mathew Martoma, received secret information from a doctor about problems with a
new Alzheimer’s drug. But internal SAC trading records, according to people directly
involved in the case, indicate that the hedge fund did not have a negative bet
in place in advance of the announcement of the drug trial’s disappointing
results. I
Read all about it at http://dealbook.nytimes.com/2013/02/03/new-details-suggest-a-defense-in-sac-case/?ref=business
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