NEW YORK, June 18 (Reuters) - A federal judge on Wednesday granted final approval to a $602 million insider trading accord between a unit of billionaire Steven A. Cohen’s SAC Capital Advisors LP and the U.S. Securities and Exchange Commission.
In April, 2013, U.S. District Judge Victor Marrero in Manhattan had raised concerns about the accord with CR Intrinsic Investors LLC because it contained language that did not require the unit to admit or deny the regulator’s charges.
He made approval contingent on the outcome of a separate case involving a settlement between the SEC and Citigroup Inc . On June 4, a federal appeals court said it was improper for judges to require the SEC to establish the truth of its allegations as a condition of approving such accords.
Marrero on Wednesday said the case “has called attention to the importance of more rigorous inquiry by the SEC” in when to enter into “neither admit nor deny” settlements. He said “there may be value in a wait-and-see approach before rushing into a settlement” when there are parallel criminal proceedings.
SAC is now called Point72 Asset Management. A spokesman for Point72 declined to comment. The SEC had no immediate comment. (Reporting by Jonathan Stempel in New York; Editing by David Gregorio)