SAC Says Cooperation With U.S. No Longer ‘Unconditional’

Steven Cohen Still

SAC Capital Advisors, Steven Cohen’s $15bn hedge-fund firm, told investors it’s no longer cooperating unconditionally with the U.S. government’s insider-trading investigation.

Because of confidentiality agreements, there will be limited disclosure for now on the progress of the investigation, according to a letter sent to clients Friday, portions of which were provided to Bloomberg News.

The firm said it expects there will be 'substantially more clarity' in coming months.

SAC is taking a more defensive stance 'either because they’ve given enough cooperation for the government to conclude there hasn’t been any wrongdoing or because the government is signaling that it intends to continue pursuing SAC and its current or former employees', said Marc Powers, New York-based head of securities litigation at law firm Baker & Hostetler LLP. Powers isn’t involved in the case.

SAC in March reached a $602m settlement with the U.S. Securities and Exchange Commission over claims the firm and one of its units profited from illegal tips about a drug trial received by former portfolio manager Mathew Martoma. The SEC said at the time the investigation of SAC was continuing.

Hit the link below to access the complete Bloomberg article:

SAC Says Cooperation With U.S. No Longer ‘Unconditional’

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