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Alternative Market Briefing

SAC Capital affiliates pay largest ever insider trading settlement- $614m

Monday, March 18, 2013

Bailey McCann, Opalesque New York: Two affiliates of Connecticut-based hedge fund SAC Capital, run by Steven Cohen made the largest ever settlement for insider trading at $614m today. As Opalesque reported earlier this afternoon, the first settlement involved affiliate Sigma Capital which agreed to pay $14m on trades surrounding Dell and Nvidia Corporation. The second settlement for $600m involved affiliate CR Intrinsic over trades made by former employee, Matthew Martoma on drug makers Elan and Wyeth.

Opalesque first reported on the Martoma affair when he was arrested in November of last year, at that time Cohen was implicated in the complaint as "Portfolio Manager A." The SEC charged CR Intrinsic with insider trading in November 2012, alleging that one of the firm’s portfolio managers Mathew Martoma illegally obtained confidential details about the clinical trial from Dr. Sidney Gilman, who was selected by the pharmaceutical companies — Elan Corporation and Wyeth — to present the final drug trial results to the public. Martoma still faces civil charges.

The Securities and Exchange Commission (SEC) says the settlement today with CR Intrinsic marks the largest ever, surpassing the $400 million paid by Michael Milken in 1990 which was then the l......................

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