Penson, BDO Seidman Settle Margin Loan Suit For $6.5M

Law360, New York (August 27, 2013, 4:33 PM EDT) -- A Texas federal judge said Friday that defunct securities clearing broker Penson Worldwide Inc. and accounting firm BDO Seidman LLP can pay $6.5 million to settle investor class action allegations that they hid the degree of risk behind Penson's margin-lending business.

U.S. District Judge Reed O'Connor approved the settlement, which will distribute about $4.4 million to shareholders who held Penson Worldwide stock from 2007 to 2011 — the timeframe in which it allegedly obscured how exposed its margin loan business was to risky investments — and...
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