Steve Cohen’s SAC Capital Advisors and U.S. prosecutors have reached an agreement that will allow the hedge fund firm to continue operating while a criminal case against it proceeds.
The Wall Street Journal reported that the filing agreement, which is pending approval from a federal judge, would require Connecticut-based SAC to maintain at least 85% of the "aggregate value" of assets owned by the firm's "entity defendants" as of July 1, in exchange for continuing its operations.
The “entity defendants” listed in the filings also include SAC affiliates Sigma Capital Management and CR Intrinsic Investors.
SAC was charged with fraud last month for allegedly allowing insider trading to go unchecked from 1999 through at least 2010 days after the Securities and Exchange Commission charged Cohen for failing to prevent insider trading at the firm.
SAC had about $14 billion in total assets under management as of July 1.