Ex-SAC Trader Lee Wins Insider-Case Dismissal After Plea (2)

A former trader at SAC Capital Advisors LP who admitted to making illegal insider trades, cooperated with the government, and later sought to withdraw his guilty plea has prevailed in his years-long fight to clear his name.

Federal prosecutors on Thursday dismissed their case against Richard S. Lee, who was the center of a prosecution the U.S. brought against the hedge fund in 2013, according to court records.

Lee pleaded guilty in July 2013, days before then-U.S. Attorney Preet Bharara unveiled unveiled a sweeping indictment claiming SAC orchestrated a massive insider-trading scheme. He was one of at least eight SAC ...