Diamondback Capital Gets $6M Refund Post-Newman

By Stewart Bishop (June 3, 2016, 7:17 PM EDT) -- Manhattan federal prosecutors have agreed to return $6 million to Diamondback Capital Management LLC that the now-shuttered hedge fund had agreed to forfeit pursuant to a non-prosecution agreement over insider trading allegations, the latest fallout from the Second Circuit's landmark Newman decision.

In court documents filed on Friday, Manhattan U.S. Attorney Preet Bharara's office said based in part on "legal developments," prosecutors have agreed to return the funds, which purportedly represented what Diamondback took in as a result of illicit trading on nonpublic information.

The refund come after U.S. District Judge Shira Scheindlin in February vacated the judgment in the related...

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