Rajat Gupta, SEC to end litigation for now
05 Aug 2011
Rajat Gupta, a former director at Goldman Sachs Group Inc and the US Securities and Exchange Commission (SEC) have agreed to end a long-drawn litigation arising from the US federal regulator's probe into insider trading charges against Gupta.
In a compromise agreement filed in the court, the SEC has agreed to drop administrative proceedings against Gupta, a former chief of consulting firm McKinsey & Co.
SEC has also agreed to file any future complaint, if at all, against Gupta in the Manhattan court, where it would be heard by District Judge Jed Rakoff.
Rakoff had, last month, ruled that Gupta had a right to fair trial and could be right in his argument that he had been singled out for claiming innocence.
The judge also wanted to know why the SEC had filed all 28 other lawsuits related to the Galleon insider-trading case in the federal court except the one against Gupta.
Gupta has been charged by federal investigators of passing tips on investments and company incomes to Galleon Group hedge fund founder Raj Rajaratnam, who has since been convicted (but not charged) in a conspiracy case.