Former SAC Capital portfolio manager Mathew Martoma pleaded not guilty at his arraignment in New York on Thursday on charges of security fraud. The next hearing in the case is scheduled for March 5, 2013.
Prosecutors claim that Martoma traded and profited repeatedly from inside information about an Alzheimer's drug that was being developed by Ellan Pharmaceuticals and Wyeth while employed at the hedge fund from 2006 to 2008.
They also claim that Martoma also shared non-public information with his boss, SAC Capital's Founder Steve Cohen. This insider information allegedly helped the firm book profits and avoid losses of $276 million. In recent months, Martoma has maintained his innocence and refused to strike a deal with prosecutors.
SAC Capital declined to comment on the arraignment.