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23 Feb 2009

Case Dismissed Against SAC Hedge Fund

Federal Judge Stanley R. Chesler of the Federal District Court of New Jersey, Friday threw out a Canadian pharmaceutical company shareholder lawsuit against a group of hedge funds including SAC Capital Advisors LP.

The Judge dismissed the lawsuit, saying "The conduct is so egregious, and the futility of imposing alternate sanctions is so clear, that dismissal is the only appropriate sanction."

Apparently the shareholders had violated a New York judge’s order sealing documents in a related Biovail case.

"The record before the court suggests that these proceedings and the RICO action proceedings were all part of a choreographed strategy by Biovail and its attorneys designed to constitute a counterattack against the Biovail securities action," the Judge wrote.

"We are gratified that the court has seen through this charade and has dismissed the case," a spokesman for SAC said.

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