The Securities and Exchange Commission announced yesterday that it has filed civil fraud charges against several entities and individuals who operate the Reserve Primary Fund, including its founder Bruce Bent and his son Bruce Bent II, “for failing to provide key material facts to investors and trustees about the fund’s vulnerability after as Lehman Brothers Holdings, Inc. sought bankruptcy protection.” The SEC also is also seeking pro rata distribution of all remaining fund assets, which would release approximately $3.5 billion currently being withheld from investors pending the outcome of numerous lawsuits against the fund, the trustees and other officers and directors of the Reserve entities. The Reserve Primary Fund became the first money market mutual fund in over a decade to “break the buck” after its exposure to Lehman Brothers caused its net-asset value to drop.
Register now for your free, tailored, daily legal newsfeed service.
Questions? Please contact firstname.lastname@example.orgRegister
SEC files fraud lawsuit against Reserve Primary Fund’s founders
Popular articles from this firm
If you would like to learn how Lexology can drive your content marketing strategy forward, please email email@example.com.
Related topic hubs
Director of Legal & Contractual Affairs
British Constructional Steelwork Assoc Ltd
"I have enjoyed receiving the Lexology newsfeeds over the last few months and in general find the articles of good quality and relevant. I like the fact that the email contains a short indication of the subject matter of the articles, which allows me to skim the newsfeed very quickly and decide which articles to read in more detail."