Shareholder Class Action Filed On Behalf Of Investors In Elan Corporation, plc Against S.A.C. Capital Advisors, LP And Affiliates By The Law Firm Of Kessler Topaz Meltzer & Check, LLP

RADNOR, Pa., Jan. 7, 2013 /PRNewswire/ -- The following statement was issued today by the law firm of Kessler Topaz Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers the American Depositary Receipts ("ADRs") of Elan Corporation, plc (NYSE: ELN) ("Elan" or the "Company"), between July 21, 2008 and July 29, 2008, inclusive (the "Class Period").  If you are a member of this class, you may view a copy of the Complaint or join this class action online at http://www.ktmc.com/cases.

The Complaint alleges that S.A.C. Capital Advisors, L.P. ("SAC"), CR Intrinsic Investors, LLC ("CR Intrinsic"), a wholly-owned subsidiary of SAC, and other related parties, including SAC's founder and chief executive officer, Steven A. Cohen, violated the Securities Exchange Act of 1934 by selling over 15 million Elan ADRs and purchasing over $1 million worth of Elan put options.  These transactions resulted in the defendants receiving over $220 million in illegal profits and avoided losses by trading on material non-public information.  Specifically, the defendants traded ahead of a negative public announcement involving the clinical trial results for bapineuzumab ("bapi"), an Alzheimer's drug being jointly developed by Elan and Wyeth.  

According to the Complaint, a portfolio manager at CR Intrinsic, Mathew Martoma, obtained inside information from the medical doctor who chaired bapi's Phase II clinical trial safety monitoring committee, Sidney Gilman.  The Complaint further alleges that after Martoma received such material non-public information from Gilman regarding the drug's clinical trial results, he shared this information with defendant Cohen, who then, with Martoma, caused SAC and CR Intrinsic to liquidate their combined holdings in Elan ADRs, worth over $365 million, and take substantial short positions, eventually selling over $500 million in Elan securities in just over one week.

When the full results of bapi's Phase II clinical trial were publicly disclosed after the market closed on July 29, 2008, Elan's ADRs dropped sharply in value, declining 41.8% from their closing price prior to the public disclosure.  According to the Complaint, by liquidating their long positions and selling short in advance of the disclosure of the disappointing clinical trial results, this illegal scheme allowed the defendants to collectively reap illicit profits and avoid losses of over $220 million.

Defendant Martoma is presently the subject of a criminal prosecution in connection with his role in this scheme.  Defendant Gilman has settled civil charges brought by the Securities and Exchange Commission, has agreed to disgorge over $200,000, and has entered into a non-prosecution agreement with the U.S. Attorney's Office for his role.

Members of the class may, not later than February 19, 2013, move the Court to serve as a lead plaintiff of the class.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision of whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq. or D. Seamus Kaskela, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].  For additional information about this lawsuit, or to join the class action online, please visit http://www.ktmc.com/cases.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Kessler Topaz Meltzer & Check, LLP, which prosecutes class actions in both state and federal courts throughout the country.  Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.  For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.  

SOURCE Kessler Topaz Meltzer & Check, LLP