Prudential Subsidiary Agrees To $600M Settlement

Law360, New York (August 28, 2006, 12:00 AM EDT) -- In one of the largest settlements to date in the investigations into the misdeeds of the mutual fund industry, a subsidiary of Prudential Financial Inc. has agreed to pay $600 million to resolve a probe into allegations of improper market timing.

Investigators had alleged that brokers with the predecessor of Prudential Equity Group LLC, a broker-dealer subsidiary of Prudential, engaged in market timing of mutual fund shares between September 1999 and June 2003.

"The deceptive trading practices at Prudential were compromising the integrity of many mutual...
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