Saturday, 23 July 2016
Last updated 19 hours ago
Nov 29 2012 | 3:43pm ET
SAC Capital Advisors will meet with its staff this afternoon to address the growing cloud surrounding the firm.
The hedge fund planned to meet with some of its 1,000-strong staff after the markets close today, CNBC reports. The meeting—the second such gathering since former portfolio manager Mathew Martoma was arrested last week and charged with insider trading—follows SAC's disclosure to clients yesterday that it had received a Wells notice from the Securities and Exchange Commission, indicating that the regulator plans to bring civil charges against the firm.
Today's meeting will address questions about the insider-trading probe the firm faces and its potential ramifications for firm founder Steven Cohen. Cohen was not named as a defendant in either the civil or criminal case against Martoma, but media reports say that he could face SEC charges. Cohen was not referred to by name in either case against Martoma, but is the person identified as "Portfolio Manager A" and the "owner" of the hedge fund Martoma worked for.
Martoma is accused of earning SAC $276 million trading on confidential information about Alzheimers' drug tests. He has refused to cooperate with prosecutors against Cohen.