Skip to main content

SAC Capital Has No Idea What The Wall Street Journal Is Talking About

  • Author:
  • Updated:

Earlier this morning, the Journalreported that certain trades made by SAC Capital's CR Intrinsic unit were being "examined" by the Securities and Exchange Commission. Specifically, the regulator was said to be "trying to determine whether SAC used inside information to profit from Johnson & Johnson's 2009 takeover of Cougar Biotechnology Inc." It was also reported that:

The civil inquiry also encompasses whether an "expert network" business that is part of an investment bank leaked nonpublic information to traders, people said...SAC also is facing a criminal probe by federal prosecutors in New York examining trades made in an account overseen by the fund's billionaire founder, Steven A. Cohen, according to court documents and people familiar with the matter. Representatives for SAC, Mr. Cohen, Johnson & Johnson and Cougar declined to comment. SAC has said it is cooperating with the probe.

While the Journal noted that SAC has not been accused of any wrongdoing, nor was it clear if "the inquiries, which have been ongoing for more than a year, will result in any charges," it also wrote that "SAC has said it is cooperating with the probe." According to representatives for the hedge fund uh...what?

“We have not been contacted by any regulatory authority related to this matter, but we would of course cooperate should there be an inquiry,” Jonathan Gasthalter, a spokesman for the Stamford, Connecticut-based firm, said in an e-mailed statement today.

But since you brought it up:

SAC...said it’s investment in Cougar Biotechnology Inc. before the company was bought by Johnson & Johnson in 2009 was “perfectly reasonable” and based on publicly available information.

Hope this helps.

SAC Said Cougar Investment Was Based On Public Information [Bloomberg]
SAC Faces Second Deal Probe [WSJ]


Getty Images

Ex-Visium Trader Has No Idea What You're Talking About Re: Alleged Fraud

Stefan Lumiere has pleaded not guilty to securities fraud, wire fraud, and conspiracy charges.