Judge In SAC Insider Trading Settlement Is Sounding Skeptical Of The Deal
Judge Victor Marrero, presiding over the insider trading case against SAC, says that the "ground is shaking" on the agreement because he questions the fact that SAC would not have to admit wrongdoing as the settlement stands now.
It's a practice that's been questioned by Judges more and more since the start of the financial crisis.
The SEC came to the record settlement with the embattled hedge fund earlier this month. It's meant to address allegations that one of SAC's subsidiaries, CR Intrinsic, used inside information to inform trades on four different companies, Dell, Nvidia Corp and drug makers Elan Corp and Wyeth Inc, now a part of Pfizer.
It all seemed open and shut once the deal was announced. The only thing left was the Judge's approval, and now that's been thrown into questions.
Settlement or no, it's important to note that this does not clear SAC for any other allegations the SEC may bring (or has already brought) against the firm.
So we'll see what happens.