SAC Capital's CR Intrinsic to pay more than $600 million in insider trading case

March 15, 2013 1:31 PM EDT Send to a Friend
The Securities and Exchange Commission today announced that Stamford, Conn.-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 involving a clinical trial for an Alzheimer’s drug being jointly developed by two pharmaceutical companies.

The SEC charged CR Intrinsic with insider trading in November 2012, alleging that one of the firm’s portfolio managers Mathew Martoma illegally obtained confidential details about the clinical trial from Dr. Sidney Gilman, who was selected by the pharmaceutical companies – Elan Corporation and Wyeth – to present the final drug trial results to the public.

CR Intrinsic is a unit of Steven Cohen's SAC Capital.

CR Intrinsic will pay $274,972,541 in disgorgement, $51,802,381.22 in prejudgment interest, and a $274,972,541 penalty.

"The historic monetary sanctions against CR Intrinsic and its affiliates are sharp warning that the SEC will hold hedge fund advisory firms and their funds accountable when employees break the law to benefit the firm," said George S. Canellos, Acting Director of the SEC’s Division of Enforcement.


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SAC Capital, Steven A. Cohen, CR Intrinsic Investors, Hedge Funds

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