Judge Victor Marrero yesterday heard arguments about whether to approve the landmark settlement between the Securities and Exchange Commission and the hedge fund SAC Capital Advisors, which is owned by the billionaire stock picker Steven A. Cohen, the New York Times DealBook blog reported yesterday. "There is something counterintuitive and incongruous about settling for $600 million if it truly did nothing wrong," Judge Marrero said. Martin Klotz, a lawyer for SAC, said that his client made a business decision in agreeing to pay such a large fine. "We’re willing to pay $600 million because we have a business to run and don’t want this hanging over our heads with litigation that could last for years," Mr. Klotz said. Judge Marerro reserved judgment on approving the settlement, which related to accusations that SAC made $276 million in profits and avoided losses by illegally trading two pharmaceutical stocks after a former portfolio manager obtained secret information from a doctor about clinical drug trials. But the judge made it clear that he was troubled that, as part of the agreement, SAC did not have to acknowledge wrongdoing.
