On August 1st, the Second Circuit reinstated the SEC's mutual fund market-timing claims against the portfolio manager of a mutual fund and the COO of the fund's adviser. The Court concluded that the SEC plausibly alleged defendants disclosed half-truths about their efforts to stop market-timing and stated claims under the Securities Act and the Securities Exchange Act. The Court also concluded that the SEC may seek penalties for aiding and abetting violations of the Investment Advisers Act and that those claims were timely because the claims did not accrue until the SEC discovered the fraud. SEC v. Gabelli.