Stevie Cohen’s SAC Capital is Accused of Suspicious Trading by FINRA

The Financial Industry Regulatory Authority (FINRA), which describes itself as “the largest independent regulator for all securities firms doing business in the United States”, has accused Stevie Cohen’s firm SAC Capital of suspicious trading which netted the firm at least $14 million over the past 10 years.

Bloomberg Businessweek reports that the self-regulatory body “referred trades in 19 companies to the US Securities and Exchange Commission for further investigation.”

Companies mentioned in the report include:

  • Genentech (acquired by Roche Group in March 2009):  About the company: Genentech Inc., or Genetic Engineering Technology, Inc., is a biotechnology corporation, founded in 1976 by venture capitalist Robert A. Swanson and biochemist Dr. Herbert Boyer.
  • ViroPharma (NASDAQ:VPHM):  The shares recently traded at $19.57, down $0.42, or 2.1%, on the day.  The shares have traded in a 52-week range of $14.62 to $22.16 and its market capitalization is $1.49 billion.  About the company: ViroPharma Incorporated is a biopharmaceutical company committed to the commercialization, development, and discovery of new medicines.  The Company’s products include a treatment for prophylaxis of hereditary angioedema as well as a capsule for the treatment of antibiotic associated pseudomembraneous colitis caused by Clostridium difficile infection and enterocolitis.
  • United Therapeutics (NASDAQ:UTHR): The shares recently traded at $41.46, down $0.73, or 1.73%, on the day.  The shares have traded in a 52-week range of $36.55 to $70.74 and its market capitalization is $2.42 billion.  About the company: United Therapeutics Corporation develops pharmaceuticals to treat vascular diseases such as pulmonary hypertension and peripheral vascular disease.  The Company’s lead products are stable synthetic forms of prostacyclin and are delivered orally or subcuntaneously.  United’s products are currently in Phase III clinical trials.
  • Hologic (NASDAQ:HOLX): The shares recently traded at $15.66, down $0.44, or 2.83%, on the day.  The shares have traded in a 52-week range of $13.90 to $23.24 and its market capitalization is $4.11 billion.  About the company: Hologic, Inc. develops, manufactures, and markets x-ray systems.  The Company makes x-ray bond densitometers that measure precise bone density for use in the diagnosing of metabolic bone diseases such as osteoporosis.

It is important to note that the issues at hand here concern SAC Capital, not necessarily the companies in which SAC Capital is alleged to have fraudulently traded.

(Note: Selected financial data are sourced from Google Finance.  All data are assumed to be accurate.)

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