Federal prosecutors and SAC Capital Advisors cleared a legal hurdle yesterday after U.S. District Judge Richard J. Sullivan said he would sign off on the civil portion of the hedge fund’s insider trading guilty plea and roughly $1.2 billion penalty, the New York Times DealBook reported yesterday. Judge Sullivan said that the case would now turn to the “main event,” a hearing on Friday before Judge Laura Taylor Swain on the $900 million criminal fine. In an unusual feature of the settlement, if she rejects the deal, SAC can withdraw its guilty plea. Legal experts, though, say it is highly likely that Judge Swain will approve the agreement.
