Investors in Elan Corp. and Wyeth shouldn’t be allowed to oppose SAC Capital Advisors LP’s plea agreement with the U.S., prosecutors and the hedge-fund company said.
The investors, who said they are victims of insider trading in Elan and Wyeth by SAC, asked to appear at today’s plea hearing in Manhattan federal court to voice their disapproval of the deal.
In the hearing, U.S. District Judge Laura Taylor Swain will consider the record $1.8 billion settlement Stamford, Connecticut-based SAC reached with prosecutors to resolve civil and criminal insider-trading allegations against it.
The investors, who have filed lawsuits against SAC, said the settlement should be rejected unless it holds the hedge fund accountable for illegal insider trading in the companies’ stock. Such an admission would make it easier for them to prove their cases against SAC.
SAC and prosecutors in the office of U.S. Attorney Preet Bharara argued in letters to Swain today that the investors aren’t entitled to be heard at the plea hearing and shouldn’t be permitted to second-guess the agreement.
The criminal case is U.S. v. SAC Capital Advisors LP, 13-cr-00541, U.S. District Court, Southern District of New York (Manhattan). The civil case is U.S. v. SAC Capital Advisors LP, 13-cv-5182, U.S. District Court, Southern District of New York (Manhattan).