Securities & Exchange Commission v. Saad

MEMORANDUM

RAKOFF, District Judge.

On March 29, 2005, the Securities and Exchange Commission (“SEC”) filed a Complaint accusing the defendants of engaging in a fraudulent scheme to inflate the reported financial results of IMPATH, Inc. (“Impath”), a public company. See Complaint, 111. While four of the defendants quickly settled the case, the two lead defendants— Saad and Adelson — denied the allegations and sought to clear their names. Both sides announced their readiness to proceed expeditiously, so as to resolve this dispute, as they were entitled to do.

But the U.S. Attorney’s Office, though…