As expected, the Second Circuit’s decision in a pending appeal involving Citibank paved the way for Judge Marrero to approve, in an opinion today, the SEC’s proposed $614 million settlement with SAC Capital. Judge Marrero initially expressed concern about the settlement being on a “neither-admit-nor-deny” basis, but, since then, a jury found former SAC Capital manager Matthew Martoma criminally liable for insider trading, and SAC Capital’s affiliate, CR Intrinsic, pled guilty to criminal insider trading. These facts appeared to assuage Judge Marrero’s earlier concerns:
Continue Reading Judge Marrero Approves $614 Million SAC Capital Settlement With SEC in Light of Second Circuit Ruling in Citi Case
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Second Circuit Reverses Judge Rakoff’s Rejection of “No Admission” SEC Settlement With Citi
By Charles Michael on
In an opinion today reversing Judge Rakoff’s highly publicized decision to reject Citi’s $285 million settlement between the SEC and Citi that involved no admission of wrongdoing, the Second Circuit held that, in reviewing consent decrees with the SEC, district courts should not address the “adequacy” of settlements:
It is an abuse of discretion to
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Judge Marrero Conditions Approval of $614 Million SAC Capital Settlement on Pending Second Circuit Ruling
By Charles Michael on
In an opinion filed today, Judge Marrero conditionally approved a $614 million insider trading settlement between the SEC and SAC Capital — the largest insider trading settlement ever (see our prior post). The approval is contingent on a ruling from the Second Circuit that raises similar questions of whether and when it is appropriate for courts to approve SEC settlements in which the defendants neither admit nor deny wrongdoing. Judge Marrero seemed to indicate, however, his view that the practice may not be appropriate in all cases:
Continue Reading Judge Marrero Conditions Approval of $614 Million SAC Capital Settlement on Pending Second Circuit Ruling