A judge in Manhattan federal court has reportedly cast doubt on a lawsuit filed by Susquehanna International Group (SIG) that alleges insider trading costing the firm $100 million. SIG claims that unknown insider traders made these profits on options bets just prior to a Chinese regulatory crackdown on cross-border brokerages.
The U.S. Securities and Exchange Commission (SEC) is also investigating Susquehanna's allegations. This probe was initiated after SIG went public with its claims in the lawsuit filed earlier. The SEC's examination is focusing on the trades detailed in Susquehanna's complaint, according to a person familiar with the confidential inquiry.
While the judge's skepticism could impact the trajectory of Susquehanna's lawsuit, the SEC's independent investigation suggests that the allegations are being taken seriously by regulators. The outcome of both the lawsuit and the SEC probe will be closely watched, particularly given the substantial $100 million in alleged losses and the implications for market integrity.
