SEC Readies For Trial With Reserve Management

Law360, New York (September 12, 2012, 7:19 PM EDT) -- The U.S. Securities and Exchange Commission said Wednesday it had not reached a settlement with Reserve Management Co. Inc. over claims the firm misled investors about the safety of its money market fund during the financial crisis, setting the stage for a lengthy trial in New York federal court.

SEC attorney Nancy Brown told U.S. District Judge Paul G. Gardephe at a court hearing that the parties had not crafted a deal to avoid trial beginning Oct. 1. Judge Gardephe warned Brown and Reserve attorney John...
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