Pfizer wants the $75 mln left from SAC Capital’s insider trading settlement with SEC | Reuters

Pharma company Pfizer told a New York federal judge on Monday that it is entitled to recoup about $75 million from the U.S. Securities and Exchange Commission’s $600 million settlement with now-shuttered hedge fund SAC Capital because it was victimized by SAC’s insider trading.

The SEC said in March that the $75 million was left over after the distribution of about $531 million to investors in pharma companies Wyeth and Elan, which had partnered in the development of an Alzheimer’s drug.

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The company’s lawyers at Skadden, Arps, Slate, Meagher & Flom argued that a Wyeth insider betrayed his duty to the company when he fed secret clinical data to the SAC portfolio manager. (The insider, a medical consultant, entered a non-prosecution agreement with the government.)

“The SEC has not argued — nor can it — that the U.S. Treasury is more of a victim than the company whose fiduciary misappropriated the results from a crucial clinical trial,” Pfizer argued. “Given that this harm stemmed from a breach of fiduciary duty owed to Wyeth, Wyeth is the ‘next best’ recipient of the fair fund.”

Source: Pfizer wants the $75 mln left from SAC Capital’s insider trading settlement with SEC | Reuters