Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Kaplan v. S.A.C. Capital Advisors, L.P.

United States District Court, S.D. New York

August 14, 2014

DAVID E. KAPLAN, et al., Plaintiffs,
v.
S.A.C. CAPITAL ADVISORS, L.P, et al., Defendants. BIRMINGHAM RETIREMENT AND RELIEF SYSTEM, et al., Plaintiffs,
v.
S.A.C. CAPITAL ADVISORS, L.P., et al., Defendants

Decided August 13, 2014

Page 333

[Copyrighted Material Omitted]

Page 334

For David E. Kaplan, Individually and on Behalf of All Others Similarly Situated, Roxy D. Sullivan, Individually and on Behalf of All Others Similarly Situated, Lindsey Rankin, Individually and on Behalf of All Others Similarly Situated, Michael S. Allen, Individually and on Behalf of All Others Similarly Situated, Chi-Pin Hsu, Individually and on Behalf of All Others Similarly Situated, Lead Plaintiffs (1:12cv9350): Deborah Clark-Weintraub, LEAD ATTORNEY, ScottScott LLP, New York, N.Y. USA; Emma Gilmore, Marc Ian Gross, Tamar Aliza Weinrib, Pomerantz LLP, New York, N.Y. USA; Ethan David Wohl, Krista Thomas Rosen, Sara Jean Wigmore, Wohl & Fructher LLP, New York, N.Y. USA.

For City of Birmingham Retirement And Relief System, Lead Plaintiff (1:12cv9350): Deborah Clark-Weintraub, LEAD ATTORNEY, ScottScott LLP, New York, N.Y. USA; Joseph Peter Guglielmo, Thomas Livezey Laughlin, IV, LEAD ATTORNEYS, Scott Scott, .L.P.(NYC), New York, N.Y. USA; Ethan David Wohl, Wohl & Fruchter LLP, New York, N.Y. USA.

For Fred M. Ross, Lead Plaintiff (1:12cv9350): Deborah Clark-Weintraub, LEAD ATTORNEY, ScottScott LLP, New York, N.Y. USA; Ethan David Wohl, LEAD ATTORNEY, Wohl & Fruchter LLP, New York, N.Y. USA.

For Kbc Asset Managment NV, Lead Plaintiff (1:12cv9350): David P. Abel, LEAD ATTORNEY, Motley Rice LLC, Mt. Pleasant, SC USA; Deborah Clark-Weintraub, LEAD ATTORNEY, ScottScott LLP, New York, N.Y. USA; Ethan David Wohl, Wohl & Fruchter LLP, New York, N.Y. USA; Gregg Steven Levin, Motley Rice LLC (SC), Mount Pleasant, SC USA.

For Gary W. Muensterman, Individually and on Behalf of All Others Similarly Situated, Plaintiff (1:12cv9350): Deborah Clark-Weintraub, LEAD ATTORNEY, ScottScott LLP, New York, N.Y. USA; Emma Gilmore, Marc Ian Gross, Tamar Aliza Weinrib, Pomerantz LLP, New York, N.Y. USA; Ethan David Wohl, Krista Thomas Rosen, Sara Jean Wigmore, Wohl & Fructher LLP, New York, N.Y. USA.

For Christian Monrad, James C. Mcgowan, Linh TU, Pat A. Sanye, John M. Gould, Rhonda Wolff, Individually and on Behalf of All Others Similarly Situated, Garry Leonard, Patricia Tracy, Benjamin Monrad, Caroline P. Gould, Ronald J. Sanye, Raj Vaddi, Seymond Pon, Lawson Phillips, Michael Cahill, John Wolff, Bridget Monrad, Jim Moser, Chris Mitchem, Joseph F. Morgan, Glen Lochmueller, John P. Connolly, Greg Kappes, Richard Lloyd, David Lindsay, Stephen W. Mamber, Steven R. Olson, Deeann Lemmerling, Plaintiffs (1:12cv9350): Deborah Clark-Weintraub, LEAD ATTORNEY, ScottScott LLP, New York, N.Y. USA; Ethan David Wohl, Wohl & Fruchter LLP, New York, N.Y. USA.

For Institutional Investor Group, Movant (1:12cv9350): Joseph Peter Guglielmo, Scott Scott, L.L.P.(NYC), New York, N.Y. USA.

For S.A.C. Capital Advisors, L.P., S.A.C. Capital Advisors, Inc., Cr Intrinsic Investors, LLC, Steven A. Cohen Defendants (1:12cv9350): Audra Jan Soloway, Daniel Jonathan Kramer, Michael E. Gertzman, LEAD ATTORNEYS, Paul, Weiss, Rifkind, Wharton & Garrison LLP (NY), New York, N.Y. USA; Martin B Klotz, Michael Steven Schachter, Sameer Nitanand Advani, LEAD ATTORNEYS, Willkie Farr & Gallagher LLP (NY), New York, N.Y. USA; Jonathan Hillel Hurwitz, Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, N.Y. USA.

For Mathew Martoma Defendant (1:12cv9350): Daniel Prugh Roeser, Larkin M Morton, Richard Mark Strassberg, Goodwin Procter, LLP(NYC), New York, N.Y. USA; John Owen Farley, Roberto M. Braceras, Goodwin Procter, LLP (Boston), Boston, MA USA.

For Sidney Gilman, Defendant (1:12cv9350): David Ross Kolker, Laurence Allen Silverman, LEAD ATTORNEYS, Bracewell & Giuliani, LLP, New York, N.Y. USA.

For Cr Intrinsic Investments, LLC, S.A.C. Capital Advisors, LLC, S.A.C. Capital Associates, LLC, S.A.C. International Equities, LLC, S.A.C. Select Fund, LLC, Defendants (1:12cv9350): Daniel Jonathan Kramer, LEAD ATTORNEY, Paul, Weiss, Rifkind, Wharton & Garrison LLP (NY), New York, N.Y. USA.

For Birmingham Retirement And Relief System, individually and on behalf of all others similarly situated, Plaintiff (1:13cv2459): Donald A Broggi, Joseph Peter Guglielmo, Scott Scott, L.L.P.(NYC), New York, N.Y. USA.

Page 335

DECISION AND ORDER

Victor Marrero, United States District Judge.

Lead Plaintiffs in Case No. 12-cv-9350, David E. Kaplan, et al., individually and on behalf of a putative class of investors in Elan Corporation securities (" Elan Investor Class" ), together with Lead Plaintiffs in Case No. 13-cv-2459, City of Birmingham Retirement and Relief System, et al., individually and on behalf of a putative class of investors in Wyeth securities (" Wyeth Investor Class" ) (collectively, " Plaintiffs" ), filed this Joint Consolidated Amended Class Action Complaint (the " CAC" ) against defendants S.A.C. Capital Advisors, L.P., S.A.C. Capital Advisors, Inc., CR Intrinsic Investors, LLC, CR Intrinsic Investments, LLC, S.A.C. Capital Advisors, LLC, S.A.C. Capital Associates, LLC, S.A.C. International Equities, LLC, S.A.C. Select Fund, LLC, and Steven Cohen (" Cohen" ) (collectively, " SAC Defendants" ); defendant Mathew Martoma (" Martoma" ); and defendant Sidney Gilman (" Gilman" ).

In Plaintiffs' three-count CAC (Dkt. No. 128), Count One asserts violations of Section 10(b) of the Securities Exchange Act of 1934 (the " Exchange Act" ), 15 U.S.C. § 78j(b) (" Section 10(b)" ), and Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5 (" Rule 10b-5" ); Count Two alleges violations of Section 20A of the Exchange Act, 15 U.S.C. § 78t-1 (" Section 20A" ); and Count Three alleges violations of Section 20(a) of the Exchange Act, 15 U.S.C. § 78t(a) (" Section 20(a)" ). Defendants moved to dismiss all counts of the CAC (see Dkt. Nos. 129, 132, 134),[1] and the parties have fully briefed the motions.[2] For the reasons discussed below, the Defendants' motions to dismiss are GRANTED in part and DENIED in part.

Page 336

I. BACKGROUND

The facts below are taken from the CAC, and the documents cited on relied upon therein. Except where specifically quoted, no further reference to these documents will be made. The Court accepts these facts as true for the purposes of ruling on the motions to dismiss. See Spool v. World Child Int'l Adoption Agency, 520 F.3d 178, 180 (2d Cir. 2008).

A. ELAN AND WYETH'S BAPINEUZAMAB CLINICAL TRIALS

The allegations in this suit concern what has been called the most profitable insider trading scheme ever uncovered. Defendant S.A.C. Capital Advisors, L.P., together with its affiliates (collectively, " SAC" ), illegally gained profits and avoided losses of $555 million by trading Elan Corporation and Wyeth securities while in possession of material, nonpublic information. The inside information at issue concerned the clinical trials of bapineuzumab (" bapi" ), a drug designed to treat Alzheimer's disease developed jointly by Elan and Wyeth. Martoma, an employee of SAC, cultivated relationships with two doctors -- Gilman and Joel Ross -- who were supervising bapi's clinical trials, using these relationships to mine for news regarding the status of the trials.

B. BUYING PERIOD CLAIMS (AUGUST 2006-JULY 18, 2008)

Between August 2006 and July 18, 2008 (the " Buying Period" ), Martoma obtained confidential information from Gilman and Ross regarding the safety and efficacy of bapi and the conduct of the clinical trials. Plaintiffs allege that Martoma reported information he obtained, which during this period reflected a positive outlook for bapi's success, to Cohen, SAC's founder, CEO, and owner. Based on the information Martoma provided, SAC greatly increased its holdings in Elan and Wyeth between August 2006 and July 18, 2008, ultimately accumulating positions in Elan and Wyeth of $336 million and $900 ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.