Portrait of John K Grubb

Texas Divorce and Prenuptial Agreement

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Ex-Wife’s Lawsuit Against Billionaire Steven Cohen Dismissed

According to the New York Times, a federal judge has dismissed a lawsuit brought against the billionaire Steven A. Cohen by his former wife. Patricia Cohen sued her ex-husband in 2009, claiming that Cohen, who founded SAC Capital, hid millions from her during their divorce proceeding. The Cohens divorced 20 years ago. The case made headlines because of claims that Cohen engaged in insider trading and stock manipulation, and his ex-wife sued under a civil version of the Racketeer Influenced and Corrupt Organizations Act.

Cohen made a claim that her ex-husband received a tip in 1985 about the impending takeover of RCA by GE. According to her claims, Cohen bought RCA shares before the deal was finalized, and made $20 million in illicit profits, and then turned around and started a new investment firm with those profits.

Mr. Cohen denied those allegations and filed to dismiss the matter. Judge Richard J. Howell of the United States District Court in Lower Manhattan dismissed the lawsuit, saying Patricia’s claims amount to nothing but speculation and rumor. The judge also said her suit violated the statute of limitations, which is four years in such cases.

The judge highlighted that Patricia failed to pursue the financial aspect of her claim after divorce proceedings in 1990, and found her claims to be without merit.

The case was dismissed with prejudice, meaning it cannot be brought again. Even an amendment would not be fruitful, as the plaintiff already had three opportunities to state her claim.

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