SEC v. CR Intrinsic Investors, et al. (insider trading, 2021)

Judgment entered

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In February 2021 the SEC announced a final consent judgment against former CR Intrinsic portfolio manager Mathew Martoma, who traded on confidential clinical-trial results for two drug developers. The judgment is an injunction; the $601 million in the release was the fund paid earlier by CR Intrinsic and relief defendants.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced the judgment on February 3, 2021 as litigation release 25022; the court entered it on February 2 in the Southern District of New York.

The SEC alleged Martoma obtained confidential results about a jointly developed drug from a doctor involved in the trials and caused hedge fund portfolios to trade ahead of the negative announcement, producing profits and avoided losses of over $275 million. He was convicted in February 2014, sentenced to nine years and ordered to forfeit more than $9 million.

The release states no monetary award against Martoma. The earlier record showed the $601 million compensation fund, which came from the firm and relief defendants, as his disgorgement; that has been removed.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2021-02-03 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.