A Manhattan federal judge gave a green light on a class action suit against Steven Cohen, a hedge fund chief, and his SAC Capital Advisors LLC to resume.
Victor Marrero, a judge overseeing the case, granted a motion by defendants to shoot down certain claims of the lawsuit, but dismissed motions on other claims. Marrero shot down motions to the litigation against Sidney Gilman and Matthew Martoma, current defendants on the case.
Martoma is currently waiting for the sentencing on his insider-trading conviction. Martoma was found guilty early this year of illegal trading. He was said to be utilizing inside information offered by a couple doctors regarding results of an Alzheimer’s drug being made by Wyeth Pharmaceuticals and Elan Corp.
The suit was originally brought up by ex-investors Elan and Wyeth.
Cohen denied allegations from the Securities and Exchange for failing to monitor Martoma as well as another employee, Michael Steinberg, in preventing them from conducting insider-trading. Steinberg was sentenced for 3 ½ years in jail earlier this year.