U.S. prosecutors have agreed to a rare settlement refund of $6 million to hedge fund Diamondback Capital Management LLC after a ruling by a 2014 federal appeals court made pursuing insider trading cases tougher, according to court papers.
In documents filed on Friday in federal court in Manhattan, the office of U.S. Attorney Preet Bharara said it had agreed to return the money Diamondback paid as part of a 2012 non-prosecution deal in light of “legal developments.”
The deal, approved by a federal judge, followed a similar agreement earlier this year in which the U.S. Securities and Exchange Commission agreed to pay back $3 million that the shuttered hedge fund had paid as part of a related settlement.
Diamondback thanked authorities in a statement for setting aside the judgments, which while “highly unusual” would “bring fair and final closure to the matter.”
Source: Reuters
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