Overview
The U.S. Securities and Exchange Commission today announced that it had reached a settlement with affiliates of Connecticut-based hedge fund SAC Capital on charges of insider trading. The settlement, totaling $614 million in disgorgement, prejudgment interest and penalties, is, according to the SEC, the largest ever in an insider trading case. The amended complaint, filed concurrently with the settlement, accuses affiliates of the massive hedge fund of making approximately $275 million in illegal profits from trading based on inside information about the results of an Alzheimer's drug trial being conducted by drug companies Elan Corporation and Wyeth. The settlement remains subject to approval by Judge Marrero. The SEC's investigation into SAC Capital remains ongoing.