SEC v. CR Intrinsic Investors, LLC ("SAC") in Insider Trading Case

On March 18, 2013, the SEC announced that Stamford, Connecticut-based hedge fund advisory firm CR Intrinsic Investors has agreed to pay more than $600 million to settle SEC charges that it participated in an insider trading scheme.

The SEC had charged CR Intrinsic with insider trading in November 2012. The charges involved information on a clinical trial for a drug. The SEC alleged that one of the firm's portfolio managers illegally obtained confidential details about the clinical trial from a doctor who was working with one of the pharmaceutical companies to present the drug trial results to the public.

The settlement, which remains subject to court approval, would be the largest ever in an insider trading case, requiring the defendant to pay:

• $274,972,541 in disgorgement,
• $51,802,381.22 in prejudgment interest, and
• $274,972,541 in penalties.

See: SEC Complaint and Litigation Release.Related News: "CR Intrinsic (SAC) Agrees to Pay More than $600 Million in Largest-Ever Insider Trading Settlement" (March 15, 2013).