Bally Settles Fraud Case Without Paying Fine

Law360, New York (February 28, 2008, 12:00 AM EST) -- Health club operator Bally Total Fitness Holding Corp. has reached an accounting fraud settlement with the U.S. Securities and Exchange Commission that does not include a monetary penalty, though the company was enjoined from future violations of securities laws and regulations.

In a complaint and accompanying consent decree filed Thursday with the U.S. District Court for the District of Columbia, the SEC accused Bally of making dozens of false and misleading statements about its financial condition from at least 1997 to 2003.

In 2001, for example,...
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