Judge asks prosecutors SAC profit information prior to approval of $900M insider-trading settlement

According to a Bloomberg report, the federal judge whom US prosecutors need to seek approval for its landmark $900 million insider trading settlement with SAC Capital Advisors LP has asked lawyers of information that would detail the illegal profit made and losses the firm has avoided and the activities of all people liable in the firm, among others. US District Judge Laura Taylor Swain will be handing out a decision on whether she will approve what the US considers will be the biggest fine imposed for insider-trading activities ever. The news agency said she posed all six questions for both sides to answer in a single-page order issued yesterday.

Aside from the first two questions, Swain is reportedly asking about the conclusion of the US government as to the net gains earned by the firm, which is founded by billionaire Steven A. Cohen, and the eight former and current employees of the firm who have pleaded guilty or have gotten a conviction to insider trading.

Bloomberg said that the $900 million makes up half of a total $1.8 billion resolution of civil claims and government charges filed against the troubled Stamford, Connecticut-based firm. It is to note that the 57 year-old Cohen has not been charged criminally, but is facing a civil proceeding by the US Securities and Exchange Commission on the grounds that he had failed to supervise trading at his firm properly. Cohen has since denied all wrongdoing charged against him.

US prosecutors had somewhat addressed Swain's queries by saying that the $1.8 billion is already higher than the supposed illicit gains and avoided losses due to the insider trading conducted by the firm.

This week, SAC Capital has changed its name to Point72 Asset Management LP in the hopes of shedding the bad image associated to its former name. The firm is reportedly withdrawing from providing wealth management services for individuals and institutions as part of their accord with the US government, and has said that it will be looking after its founder's money instead.

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SAC Capital Advisors LP, US District Judge Laura Taylor Swain, US Securities and Exchange Commission, Steven A. Cohen

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