Pfizer has appealed a federal judge’s decision denying its claim to $75.2 million from a 2013 insider trading settlement involving Steven A. Cohen’s former hedge fund, SAC Capital Management.
The appeal was filed with the 2nd U.S. Circuit Court of Appeals in Manhattan on Tuesday.
The dispute stems from SAC’s $602 million settlement with the U.S. Securities and Exchange Commission over trades linked to drugmakers Wyeth and Elan, based on insider information from neurologist Mathew Martoma, an SAC employee convicted in the case. Pfizer argues it deserves the funds, citing a fiduciary breach by the neurologist, who was a Wyeth consultant during a 2008 Alzheimer’s drug trial.
In November, U.S. District Judge Victor Marrero ruled that Wyeth, acquired by Pfizer in 2009, was not a victim of Martoma’s trades, making the company ineligible for leftover funds from the settlement. The appeals process, which often takes months, is underway.
Steven A. Cohen, who was not criminally charged, rebranded SAC Capital as Point72 Asset Management in 2014. He currently has a net worth of $21.3 billion, according to Forbes.
