Here we go again: Steve Cohen’s SAC Capital Management and others find themselves at the wrong end of a $5 billion lawsuit, as a Canadian insurer claims a band of hooligan hedge funds are out to get it. The plot is somewhat familiar, as SAC has been hit with suits like this before, charging it with drive down a company’s share price, but this time the details are a little juicier. According to the Globe and Mail, the insurer, Fairfax Financial Holdings, says the hedgie group engaged in all sorts of schemes to damage the firm’s reputation, going so far as spreading a rumor that its CEO, Prem Watsa, put all his assets in his wife’s name and sneaked out of the country. Fairfax also claims that the Royal Canadian Mounted Police were set to raid its offices and in one scheme, says the paper, and sent a package to the pastor of Watsa’s church. The package contained a long document suggesting that somehow the CEO was in cahoots with someone defrauding the Catholic Church, who supposedly engaged in “sadomasochistic and group sex and other sensational activities.” Fairfax, which filed the suit in New Jersey, itself has been the subject of a class action by some debt holders who claim the insurer failed to disclose material information about the sale of its debt securities, while the firm has also been one of the firms the Securities and Exchange Commission has been looking at regarding unusual reinsurance polices, The Wall Street Journal reports. Others named in the suit are Sigma Capital Management, Exis Capital Management, Lone Pine Capital, Rocker Partners,
