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ARTICLE · 03 APRIL 2013

SEC Secures Largest-Ever Settlement For Insider Trading Case

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Hedge fund advisory firm CR Intrinsic Investors, a unit of hedge fund SAC Capital Advisors LP, has agreed to pay more than $600 million to settle insider trading claims brought by the SEC.

United StatesLitigation, Mediation & Arbitration
Brian Casey
Brian Casey
Thomas Gallo
Thomas Gallo
David Powlen
David Powlen
Kevin Rising
Kevin Rising
Kevin McDermott
Kevin McDermott
Anne DePrez
Anne DePrez
David Young
David Young
Solomon Wisenberg
Solomon Wisenberg
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Hedge fund advisory firm CR Intrinsic Investors (CR Intrinsic), a unit of hedge fund SAC Capital Advisors LP (SAC), has agreed to pay more than $600 million to settle insider trading claims brought by the SEC. The suit against CR Intrinsic was the largest insider trading case ever charged by the SEC, and the settlement was the largest ever in an insider trading case.

The SEC's complaint alleged that from 2007 through mid-2008, CR Intrinsic and one of its portfolio managers, Mathew Martoma, obtained material nonpublic information from Dr. Sidney Gilman concerning the clinical trial results of an Alzheimer's drug being jointly developed by two pharmaceutical companies. Dr. Gilman was the chairman of the safety monitoring committee overseeing the clinical trial for the Alzheimer's drug. During that period, Dr. Gilman provided Mr. Martoma with the material nonpublic information regarding the drug trials through numerous phone calls and paid consultations arranged by an

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