Judge Throws Out 12-Year-Old Lawsuit Against Steve Cohen

More than seven years ago, we reported on the wide-ranging financial conspiracy involving almost every single prominent US-based hedge fund and a Canadian firm called Fairfax Financial Holdings that they schemed to short - and then crush by spreading dubious research and shoddy accounting.

Around the time that a Reuters report on recently declassified court document from 2008, which outlined details of the plot, including Cohen's alleged role.

Cohen

Now, a New Jersey judge has put an end (for now, at least) to the 12-year-long legal saga by ruling that the lawsuit didn't belong in his court. A state appeals court revived Fairfax's claims last April after they were previously dismissed in 2011 and 2012. Judges have already thrown out claims against Dan Loeb's Third Point and Jim Chanos's Kynikos Associates LP, according to the New York Post.

Billionaire Steven A. Cohen has won the dismissal of an $8 billion lawsuit accusing him and his former firm SAC Capital Advisors LP of conspiring with other hedge funds to spread false rumors about Fairfax Financial Holdings, hoping to “crush” or “kill” the insurer.

In a decision last week, New Jersey Superior Court Judge Frank DeAngelis said the nearly 12-year-old case did not belong in that state’s courts because there was no evidence SAC expected or intended to cause injury there while "conspiring to drive down the share price of a Canadian company."

According to Reuters, Fairfax said it was victimized in a coordinated raid.

Fairfax claimed it was victimized by a four-year “bear raid” by hedge funds that engineered bogus accounting claims and biased analyst research, and persuaded reporters to write negative stories about the Toronto-based insurance and investment management company.

It said the funds did this to profit from short sales, or bets its stock price would fall. Fairfax claimed that hedge fund operatives ran the bear raid from New Jersey.

Cohen, whose four-year ban from the securities industry ended in January, is also facing another lawsuit from a former female employee alleging a culture of harassment and "hostility toward  women" at Point72.