Zamansky LLC is currently investigating CR Intrinsic Investors LLC (“CR Intrinsic”), a hedge fund based in Stamford, Connecticut. CR Intrinsic was an affiliated unit of the $13 billion hedge fund S.A.C Capital Advisors (“SAC Capital”), run by Steven A. Cohen.
On November 21, 2012, the SEC arrested and charged CR Intrinsic’s portfolio manager, Mathew Martoma, with having traded on illegally obtained non-public information about two drug companies, Elan and Wyeth. According to the SEC Complaint, CR Intrinsic reaped illegal profits or avoided losses of $276 million in 2008, by trading ahead of public announcements about clinical trial results for an Alzheimer’s drug. Martoma received information from a paid expert consultant who was on the committee overseeing the drug trials.
These illegal gains or losses avoided based on inside information distorted CR Intrinsic’s performance, and misled investors. CR Intrinsic’s investors were also misled concerning the fund’s source of returns and expertise at identifying owed fiduciary duties that were breached by the illegal acts of Martoma, the portfolio manager, and his supervisors.
If you invested in the CR Intrinsic fund through SAC Capital and suffered a loss, please contact Jake Zamansky at 212 742-1414 or firstname.lastname@example.org for a free and confidential consultation with one of our securities attorneys.