Hedge Funds

SAC Capital hit with $4.6 billion "racketeering" suit


Using the same racketeering statutes that are often applied in cases against the mafia and drug cartels, the pharmaceutical company Biovail on February 22 filed a suit in New Jersey court accusing Steve Cohen's $7 billion SAC Capital Advisors of engineering and executing an elaborate stock manipulation scheme in 2003 and 2004 that battered the drugmaker's stock in an effort to produce profits from short-selling.

Canada's largest drug company is requesting a jury trial and is seeking $4.6 billion in damages from SAC, which it claims led a "bear attack" to devalue Biovail's stock and make it a sitting