The US Securities and Exchange Commission (SEC) has filed to dismiss its lawsuit against Silver Point Capital, which accused the hedge fund of failing to prevent a consultant from sharing confidential information with its trading arm, according to a report by Bloomberg.
The move, disclosed in a Thursday filing in federal court in Connecticut, is still subject to final approval by the SEC’s commissioners.
Silver Point, a credit-focused hedge fund, welcomed the resolution, saying in a statement that: “There was absolutely no basis in the evidence or the law for the claims asserted by the SEC, and the SEC should never have filed this action in December 2024”.
The SEC’s lawsuit alleged that Silver Point had inadequate policies to prevent a consultant — an attorney who was a member of a creditors’ committee tied to Puerto Rico’s municipal bond restructuring — from sharing non-public information that could have benefited the fund’s trading arm.
Silver Point, however, denied any wrongdoing, stating that a four-year investigation and the review of 350,000 documents found no evidence that insider information was shared or that the firm engaged in improper trading.
The SEC declined to comment on the case.
