In this matter, Compass Lexecon was retained by counsel for Steven Cohen to evaluate the economic evidence in a Securities and Exchange Commission (SEC) administrative action against him claiming that he failed to reasonably supervise two SAC Capital employees who allegedly committed insider trading offenses. In October 2015, prosecutors dismissed charges against Michael Steinberg, one of the SAC employees who the SEC claimed Mr. Cohen failed to reasonably supervise. Subsequently, in a January 2016 settlement considered a major victory for Mr. Cohen after years of investigation, he neither admitted nor denied any wrongdoing. The SEC settlement cleared the way for Cohen to manage outside investors’ money in 2018 and did not include monetary penalties. The Compass Lexecon team included Daniel R. Fischel, David Gross, Jessica Mandel, Kevin Hartt, Samuel Hollander and others in Compass Lexecon’s Chicago office. Compass Lexecon worked with Daniel J. Kramer and Marc Falcone of Paul, Weiss, Rifkind, Wharton & Garrison LLP, Martin Klotz of Willkie Farr & Gallagher LLP and David Nelson of Boies Schiller Flexner LLP. We also worked with Barry H. Berke of Kramer Levin Naftalis & Frankel LLP who successfully represented Michael Steinberg.