Susquehanna insider trading case called into doubt by US judge
Judge cites insufficient evidence to justify extending a freeze on some accounts while case proceeds
A US federal judge has ruled against Susquehanna International Group's lawsuit alleging it lost millions due to insider trading amidst a Chinese regulatory crackdown. The judge denied a request to maintain a freeze on certain accounts while the case continued, citing insufficient evidence from Susquehanna to support the freeze. The firm had not identified an alleged "tipper" of the inside information and suggested alternative explanations for the trades.
Susquehanna sued 100 anonymous defendants in Manhattan federal court, seeking to recover over $70 million in losses from option bets placed before a May 22 Chinese government announcement targeting cross-border brokerages. The lawsuit was notable as insider trading cases are typically brought by the SEC or federal prosecutors. Both the Justice Department and the SEC are currently investigating the alleged trades.
Citadel Securities joined the suit shortly after, claiming similar losses. Judge Arun Subramanian noted that while insider trading could be one explanation, there needed to be more evidence to freeze millions of dollars in funds for the duration of the lawsuit. The case centered on 200,000 short-dated put option bets on brokerages targeted in the Chinese crackdown.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
