SAC Capital pays record settlement for insider trading
New York, NY, United States (4E) – SAC Capital Advisors’ two affiliates agreed to settle the $615.7mn insider-trading cases filed against them by the U.S. Securities and Exchange Commission (SEC).
SAC said they will pay $602mn to the securities regulators to resolve a civil lawsuit involving improper trading by its employees, making it the biggest settlement of an insider trading action according to officials.
The first case was concluded on Friday, where the SEC declared that CR Intrinsic Investors agreed to $601.8mn settlement to settle charges of insider trading related to a clinical trial for an Alzheimer’s drug co-developed by two pharmaceutical firms.
The record monetary sanctions against Stamford, Conn.-based company along with its affiliates are a strong warning that the SEC is committed to hold accountable the hedge-fund advisory firms and their funds in the event their employees break the law for the firm’s benefit, according to a statement by George S. Canellos, who is the acting director of the SEC’s Division of Enforcement.
SAC also said that it will pay $14mn to resolve another insider trading case involving the illegal trade of technology stocks including giant PC maker Dell.
SAC spokesman Jonathan Gasthalter said that the settlements are an important step in resolving all outstanding regulatory issues and allow the company to move forward.