WSJ Reports Investigation Into SAC Capital
From Associated Press (October 20, 2011)
NEW YORK -- Hedge fund SAC Capital Advisors LP is being investigated by federal regulators for using inside information to profit from a health care takeover in 2009, the Wall Street Journal reported Thursday.
Citing unnamed sources who were familiar with the matter, the paper said the Securities and Exchange Commission is trying to determine in a civil inquiry whether SAC Capital improperly profited from Johnson & Johnson's takeover of Cougar Biotechnology Inc.
The SEC declined to comment, citing its policy of not confirming or denying existing investigations.
A representative for SAC Capital said in an emailed statement that the company hasn't been contacted by any regulatory authority regarding the matter, but that it would "cooperate should there be an inquiry."
It also said that its investment in Cougar Biotech "was perfectly reasonable and based on strong fundamental research and widely available public information."
SAC Capital, based in Stamford, Conn., held 7,800 shares of Cougar at the end of 2008. By March 31, 2009, it owned 632,291 shares, the Wall Street Journal reported. Johnson & Johnson announced its deal to buy Cougar later that spring.
The Wall Street Journal also reported in June that SAC is a focus of an SEC investigation into whether traders used inside information to profit from the $15 billion takeover of biotechnology firm MedImmune Inc. in 2007.
Posted: October 2011