Former Goldman Sachs director Raj Rajaratnam has settled the civil suit pending against him by the Securities and Exchange Commission in the US. The former director continues his prison sentence for insider trading, but has a litany of lawsuits still pending against him.
Rajaratnam, convicted last year of trading on inside information from 2003 through 2009, will pay nearly $1.45 million to settle a civil case brought by the Securities and Exchange Commission, according to court documents. A federal judge approved the deal Thursday.
The settlement includes $1.29 million representing profits gained and losses avoided as a result of trading on tips from former Goldman Sachs Group Inc. director Rajat Gupta, who was convicted separately in June. It also includes $147,738 in prejudgment interest.
Founder of the Galleon Group of hedge funds, the Sri Lanka-born Rajaratnam is serving 11 years at a Massachusetts federal prison, and has appealed. The 11 year sentence is the longest ever imposed for insider trading, and has been seen as a landmark case elevating the bar to deter future insider trading. (Zolmax News)