US Attorney, Manhattan
January 23 2012
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that Diamondback Capital Management, LLC (“Diamondback”) has agreed to pay $6,000,000 to the United States and entered into a non-prosecution agreement (“NPA”) with the U.S. Attorney’s Office, in which the Office agrees not to criminally prosecute Diamondback related to charges of insider trading by certain firm employees. Specifically, between January 1, 2008 and January 20, 2012, certain Diamondback employees obtained material, non-public information (“Inside Information”) from public company employees through outside consultants and expert networking firms, and used this information to execute securities transactions.
The $6,000,000 represents the total amount of illegal profits and losses avoided as a result of trades that were based, or likely based, in whole or in part, on Inside Information. The NPA, which applies only to Diamondback and not to any individuals, requires that the firm provide its full and truthful cooperation to the United States, including the voluntary provision of information and documents.