On Monday, U.S. District Judge Jed S. Rakoff, who most recently caused the SEC much angst in its Bank of America case, refused to approve a settlement agreement between the SEC and Schottenfeld Group LLC. Schottenfeld Group is connected to the Galleon Group insider trading case. According to Reuters, the proposed settlement required Schottenfeld Group to pay $763,000.
Rakoff stated that “the agreement did not seem unreasonable,” but he wanted more information on how the disgorgement was calculated before granting approval. The parties must produce the information by April 12.
Last week, U.S. District Judge Richard Sullivan approved a settlement agreement in a related case between the SEC and Schottenfeld Group. Reuters reports that under that settlement, Schottenfeld Group agreed to pay $1.21 million.