Former Goldman Sachs (NYSE: GS) director Raj Rajaratnam has settled the civil suit pending against him by the Securities and Exchange Commission. 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.
