In another high-profile settlement, a federal judge again scrutinized the Securities and Exchange Commission’s willingness to settle charges with defendants without requiring the company to admit to any wrongdoing. A federal judge must determine whether a settlement is “fair, reasonable and adequate within the limitations Congress has imposed on the SEC to recover investor losses,” Federal District Court Judge Victor Marrerro wrote on Tuesday. “Courts should also weigh the effect of the proposed settlement in an SEC enforcement action on the public interest.” The judge found no fault with the $602 million settlement, which set a record for an insider trading case, between the SEC and SAC Capital Advisors, the hedge fund run by Steven Cohen. Read Forbes report here.
