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Lawyers for Cohen’s Ex-Wife Seek to Withdraw From Case

Lawyers representing the ex-wife of SAC Capital Advisors LP founder Steven A. Cohen in her racketeering lawsuit against her ex-husband asked a court to let them withdraw from the case.

The lawyers, Howard Foster and Matthew Galin, said in court papers filed today in Manhattan federal court that the move is “a mutual decision” reached with Patricia Cohen. Cohen hired the lawyers in 2010 to represent her in the suit, filed a year earlier, in which she alleged her ex-husband cheated her out of money in their 1990 divorce, Foster and Galin said.

Patricia Cohen intends to retain new counsel within 30 days, the lawyers said.

A federal appeals court reinstated Patricia Cohen’s case last month after a lower court dismissed it in March 2011. U.S. District Judge Richard Holwell ruled that Patricia Cohen had taken too long to file the case. Holwell said she made similar claims in a 1991 lawsuit in which she accused Steven Cohen of hiding assets and lying about the value of his investments.

In last month’s ruling, the New York-based appeals court reinstated claims against Steven Cohen based on federal racketeering law, fraud and breach of fiduciary duty. The court said Holwell was correct to dismiss a claim of unjust enrichment.

The case is Cohen v. Cohen, 09-cv-10230, U.S. District Court, Southern District of New York (Manhattan).

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