Yesterday, the Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth filed an enforcement action against multiple parties affiliated with the Reserve Primary Fund (the "Fund") in connection the Fund “breaking the buck” in September of last year. Specifically, the complaint alleges that during the week of Lehman Brothers’ bankruptcy, sales personnel of Reserve Management Company, Inc. ("Reserve Management"), at the direction of senior personnel, made false and misleading statements in an attempt to reassure investors and assuage the onslaught of redemption requests the Fund had received. Simultaneously, the complaint alleges that Reserve Management nonetheless satisfied redemption requests for larger, more favored customers. The Commonwealth is seeking restitution for affected Massachusetts investors for violation of state securities laws, as well as fines and censures for certain respondents.