NEW YORK (AP) — The managers of a money market fund whose failing assets raised fears about other such funds during the 2008 financial crisis have agreed to pay $10 million to settle a class-action lawsuit by investors.
The money will go into what's left of Reserve Management Co.'s Reserve Primary Fund. The managers also agreed to give up $42 million of their $72 million in claims for legal and other expenses against the fund.
Managers Bruce Bent Sr. and his sons Bruce Bent II and Arthur Bent III admitted no wrongdoing in the proposed settlement, filed late Friday in federal court in New York.
The Reserve Primary Fund "broke the buck" — its assets fell below the level needed to fully repay investors — after investing heavily in bonds from Lehman Brothers.