This lecture delves into the case study of SAC Capital, focusing on insider trading practices within the company. The instructor discusses the background of SAC, its founder Steve Cohen, and notable events such as the Mathew Martoma case. The lecture explores the unethical practices, investigations, and legal consequences faced by individuals involved in insider trading at SAC Capital. It also covers the strategies employed by SAC, the organizational structure, and the impact of the scandal on the company's reputation and financial penalties.