SEC Ordered To Continue Distributing Settlement

Law360 (September 25, 2006, 12:00 AM EDT) -- A federal judge sidestepped objections from a slew of investment banks Monday, and ordered securities regulators to resume locating and compensating investors wronged by dishonest research.

The decision was a victory for the U.S. Securities and Exchange Commission, which convinced the court that—given more time—it could pay out most of the $172 million leftover from a massive settlement reached in April 2004.

The order to continue repaying as much as $125 million to thousands of unknown investors was issued by Judge William H. Pauley III, in...
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