Shareholder Class Action Filed On Behalf Of Investors In Elan Corporation, plc
Against S.A.C. Capital Advisors, LP And Affiliates By The Law Firm Of Kessler
Topaz Meltzer & Check, LLP
RADNOR, Pa., Jan. 7, 2013
RADNOR, Pa., Jan. 7, 2013 /PRNewswire/ --The following statement was issued
today by the law firm of Kessler Topaz Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Southern District of New York on behalf of
purchasers the American Depositary Receipts ("ADRs") of Elan Corporation, plc
(NYSE: ELN) ("Elan" or the "Company"), between July 21, 2008 and July 29,
2008, inclusive (the "Class Period"). If you are a member of this class, you
may view a copy of the Complaint or join this class action online at
The Complaint alleges that S.A.C. Capital Advisors, L.P. ("SAC"), CR Intrinsic
Investors, LLC ("CR Intrinsic"), a wholly-owned subsidiary of SAC, and other
related parties, including SAC's founder and chief executive officer, Steven
A. Cohen, violated the Securities Exchange Act of 1934 by selling over 15
million Elan ADRs and purchasing over $1 million worth of Elan put options.
These transactions resulted in the defendants receiving over $220 million in
illegal profits and avoided losses by trading on material non-public
information. Specifically, the defendants traded ahead of a negative public
announcement involving the clinical trial results for bapineuzumab ("bapi"),
an Alzheimer's drug being jointly developed by Elan and Wyeth.
According to the Complaint, a portfolio manager at CR Intrinsic, Mathew
Martoma, obtained inside information from the medical doctor who chaired
bapi's Phase II clinical trial safety monitoring committee, Sidney Gilman.
The Complaint further alleges that after Martoma received such material
non-public information from Gilman regarding the drug's clinical trial
results, he shared this information with defendant Cohen, who then, with
Martoma, caused SAC and CR Intrinsic to liquidate their combined holdings in
Elan ADRs, worth over $365 million, and take substantial short positions,
eventually selling over $500 million in Elan securities in just over one week.
When the full results of bapi's Phase II clinical trial were publicly
disclosed after the market closed on July 29, 2008, Elan's ADRs dropped
sharply in value, declining 41.8% from their closing price prior to the public
disclosure. According to the Complaint, by liquidating their long positions
and selling short in advance of the disclosure of the disappointing clinical
trial results, this illegal scheme allowed the defendants to collectively reap
illicit profits and avoid losses of over $220 million.
Defendant Martoma is presently the subject of a criminal prosecution in
connection with his role in this scheme. Defendant Gilman has settled civil
charges brought by the Securities and Exchange Commission, has agreed to
disgorge over $200,000, and has entered into a non-prosecution agreement with
the U.S. Attorney's Office for his role.
Members of the class may, not later than February 19, 2013, move the Court to
serve as a lead plaintiff of the class. A lead plaintiff is a representative
party that acts on behalf of other class members in directing the litigation.
In order to be appointed lead plaintiff, the Court must determine that the
class member's claim is typical of the claims of other class members, and that
the class member will adequately represent the class. Your ability to share
in any recovery is not, however, affected by the decision of whether or not to
serve as a lead plaintiff. Any member of the purported class may move the
court to serve as lead plaintiff through counsel of their choice, or may
choose to do nothing and remain an absent class member.
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus
Kaskela, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
email@example.com. For additional information about this lawsuit, or to join the
class action online, please visit http://www.ktmc.com/cases.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Kessler Topaz Meltzer & Check, LLP, which
prosecutes class actions in both state and federal courts throughout the
country. Kessler Topaz Meltzer & Check is a driving force behind corporate
governance reform, and has recovered billions of dollars on behalf of
institutional and individual investors from the United States and around the
world. For more information about Kessler Topaz Meltzer & Check, or for
additional information about participating in this action, please visit
CONTACT: Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at firstname.lastname@example.org
SOURCE Kessler Topaz Meltzer & Check, LLP
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