A lengthy suspension for Cohen became less likely after a dozen insider-trading convictions were thrown out last year. To prove insider trading, prosecutors now must show that a defendant knew their tips came from someone who had a duty to keep the information secret and that the leaker got a benefit from passing it on, the U.S. Court of Appeals in New York said in December 2014.

No Complacency

Cohen said he opted to settle the SEC’s case because the longer the litigation went on, “the more it distracted from the world-class firm that we are building.” In resolving the matter, Point72 can’t become “complacent,” he wrote in the memo to employees.

“We must continue to do business at the highest ethical and professional levels and in a way that is fully transparent to our regulators, counterparties, future employees, and potential future investors,” Cohen said. “We will remain industry leaders — not followers — in compliance. Doing so requires each of us to continue to adhere to these high standards, every day, without exception.”

The SEC imposed no financial penalties on Cohen. In 2013, SAC pleaded guilty and agreed to pay a record $1.8 billion fine to resolve U.S. insider trading claims. Cohen wasn’t charged with wrongdoing, as part of the earlier settlement.

Cohen is arguably the best stock trader of all time, a renowned “tape reader” with an uncanny ability to predict where prices are headed. The Stamford, Connecticut-based firm’s investment returns for clients averaged 25 percent over the past two decades, and Cohen never posted a losing year in the portfolio he personally oversees.

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