Legendary Wall Street investor and hedge fund manager Leon Cooperman has settled insider trading charges filed against him with the SEC, to the tune of $4.9 million, despite claiming he would have won the case.
The Omega Advisors chairman and CEO appeared on CNBC Tuesday to discuss why he chose to settle as opposed to fight the charges he was so confident he could prevail on.
So, Why Settle?
Cooperman stated that his lawyers told him the probability of winning the case was “overwhelmingly high,” but it did not make financial sense to fight the charges and continue a trial that would cost $15 million–$20 million and take several years to settle.
“Let me make it clear, I’ve entered into what's called a no admit no deny settlement, which prohibits me from commenting on the government's allegations or the strength of my defenses,” Cooperman stated. “I believe the outcome speaks for itself and I'll leave it at that.”
The hedge manager did say the process of dealing with the SEC was “extraordinarily abusive,” and his business took a significant hit while the case was underway, with his fund losing nearly $4 billion in Assets Under Management in an 18-month span.
“I wanted to get it behind me and I did what I did and the system has got to be reformed in my opinion,” concluded Cooperman in the powerful interview.Related Links: Here Are Some Of Leon Cooperman's Top Stock Picks For 2017
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.