SAC founder Cohen faces new $5.5m claim by ex-wife
Thursday 04 April 2013
A New York appeals court has revived a lawsuit by the former wife of Steven Cohen, the founder of the hedge fund SAC Capital Advisors, who accused the billionaire of hiding $5.5m (£3.6m) from her during proceedings that led to their 1990 divorce.
The appeals court ruled that a lower court had erred in dismissing fraud-based claims by Patricia Cohen, who had sued her ex-husband in 2009.
It also revived claims of racketeering and breach of fiduciary duty, while upholding the dismissal of an unjust enrichment claim.
Circuit Judge Pierre Leval said Mrs Cohen had made a "plausible" allegation that Steven Cohen concealed the $5.5m during negotiations on a separation agreement in 1989, which preceded the divorce. He noted that the court's decision did not address whether Mrs Cohen's fraud claims had merit.
A spokesman for SAC Capital Advisors said: "These decades-old allegations by Mr Cohen's former spouse were patently false."
The decision is another setback for Mr Cohen, whose fund has faced a federal insider trading inquiry. Last month it offered a $616m settlement without admitting wrongdoing.
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 MH370: 'Putin ordered plane to be flown to Kazakhstan space port,' conspiracy theory claims
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin, says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
iJobs Money & Business
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...
£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...
£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...
£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...