Federated Investors Settle Market Timing Case For $72M

Law360, New York (November 28, 2005, 12:00 AM EST) -- Three Federated Investors affiliates have agreed to pay $72 million to settle allegations by the U.S. Securities and Exchange Commission and New York Attorney General Elliot Spitzer that they broke federal securities laws with undisclosed market timing arrangements and late trading.

Under the agreement, Federated will pay a total of $35 million in restitution to injured investors and $45 million in civil penalties, and will reduce its management fees by an estimated $20 million over the next five years, Spitzer’s office said.

The $35 million payment...
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