In order to avoid formal proceedings by the U.S. Justice Department, -based hedge fund Diamondback Capital Management, with offices at , has reportedly agreed to pay more than $9 million to settle allegations of insider trading.
According to a Huffington Post report, Diamondback will return $6 million in ill-gotten gains and will also pay a $3 million penalty as part of a settlement reached with the U.S. Securities and Exchange Commission and the Justice Department. The deal allows the hedge fund to avoid criminal charges.
On Monday the hedge fund told investors that they will not take a financial hit as a result of the settlement, according to the report.
News of the settlement comes less than a week after U.S. prosecutors announced charges against seven people who worked for five different hedge funds in connection with an alleged $62 million insider-trading scheme, including Todd Newman, who headed technology trading for Diamondback.