Ex-wife of SAC's Cohen has lawsuit dismissed

Reuters News
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Posted: Mar 30, 2011 7:39 PM
Ex-wife of SAC's Cohen has lawsuit dismissed

NEW YORK (Reuters) - A Manhattan federal judge dismissed a lawsuit by the former wife of hedge fund manager Steven Cohen, who accused him of hiding assets from her when they split up.

U.S. District Judge Richard Holwell said on Wednesday Patricia Cohen failed to show that her former husband, the founder of SAC Capital Advisors, misled her about $5.5 million of profit from a real estate transaction and was involved in civil racketeering.

Patricia Cohen originally accused Steven Cohen in a December 2009 lawsuit of cheating her out of a piece of SAC, which has roughly $13 billion of assets and is among the hedge fund industry's biggest firms.

She later switched lawyers and narrowed her lawsuit over the 1990 divorce, including dropping SAC as a defendant.

Holwell concluded Patricia Cohen had waited too long to bring several claims and also failed to allege facts that give rise to "a strong inference of fraudulent intent."

The judge dismissed Patricia Cohen's complaint with prejudice, meaning she cannot bring it again.

"Amendment would not be fruitful where plaintiff has already had three opportunities to state a claim," Holwell wrote.

Lawyers for Cohen did not immediately return telephone and emailed requests for comment.

SAC said in a statement: "As we have said from the outset, the allegations by Mr. Cohen's former spouse were entirely without merit. We are pleased that the complaint has been dismissed."

The case is Cohen v. Cohen et al, U.S. District Court, Southern District of New York, No. 09-10230.

(Reporting by Jonathan Stempel in New York; editing by Andre Grenon)