business
Susquehanna Investment Group Sues 100 Defendants Over Alleged Insider Trades
The Pennsylvania-based firm seeks to recover more than $70 million after options trades placed before a Chinese regulatory crackdown on three Nasdaq-listed brokers. Semafor reported the suit names unnamed defendants who allegedly profited at least $100 million.
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Susquehanna Investment Group filed a lawsuit against 100 unnamed defendants alleging they placed suspicious options trades before China’s financial regulator announced a crackdown last month on three online brokers popular with mainland Chinese investors.
-based Interactive Brokers. The defendants bought options that would rise in value as shares of the three Nasdaq-listed brokerages fell after the announcement.
Susquehanna stated it was the counterparty on most of the trades. The firm said the allegedly ill-gotten gains exceed those in the Galleon insider-trading case that sent Raj Rajaratnam to prison in the early 2010s. Bloomberg reported the individuals who made the trades profited at least $100 million from inside information about the Chinese government crackdown on cross-border brokerages.
The shares of the targeted brokerages declined following the regulator’s announcement.
Transparency
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CorroborationLimited · 2 sources
