The Week In Securities Litigation: SEC Settles 2 Insider Trading Cases

The Week In Securities Litigation: SEC Settles 2 Insider Trading Cases

The SEC settled two insider trading cases this week in which S.A.C. Capital was named as a relief defendant. In one it obtained the largest payment to date in an insider trading case, about $600 million. Reportedly S.A.C. Capital will fund the settlement. The second was one of the Dell insider trading cases. Insider trading charges were also brought against the brother of convicted hedge fund mogul Raj Rajaratnam in conjunction with the U.S. Attorney's Office for the Southern District of New York. In addition, the agency resolved a long running options backdating case and settled with another foreign bank selling securities to its U.S. customers without registering as a broker dealer.

The D.C. Circuit resolved a case which is reminiscent of the 1980s. During that period the SEC and the CFTC sparred over turf. This time it was the CFTC and FERC. The CFTC prevailed in view of the "exclusive" jurisdiction provision in its statute, trumping FERC's claim that since the manipulative effects impacted both the futures and physicals markets that both agencies had authority to investigate.


Remarks: Commissioner Luis Aguilar delivered remarks titled: Inclusion is a Strength: Corporate America and the SEC Should Reflect America (Washington, D.C. March 21, 2013)(here). His remarks focused on the lack of diversity at the SEC and in corporate America and the Commission's related disclosure rules.

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For more commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.

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