Puerto Rico Creditors Denied Urgent Insider Trading Probe

A federal magistrate judge quickly shot down an expedited bid by Puerto Rico’s creditors to investigate possible insider trading by hedge funds that participated in the island’s confidential debt negotiations.

The unsecured creditors committee failed to justify its emergency request to lead an investigation into the bond trading, Magistrate Judge Judith Dein said in a court order Monday, concurring with groups of opposing bondholders.

The committee’s Oct. 17 probe request was filed too late to be heard during an omnibus hearing scheduled later this month in the U.S. District Court for the District of Puerto Rico over the island’s bankruptcy, ...