Reserve denies insider-trading charge

Reserve Management Co. denied claims of insider trading related to its Primary Fund in response to a lawsuit that Ameriprise Financial Inc. filed.
OCT 03, 2008
Reserve Management Co. Inc. denied claims of insider trading related to its Primary Fund in response to a lawsuit that Ameriprise Financial Inc. filed. Activity in the fund was frozen Sept. 16 when the money market mutual fund’s net asset value dropped below $1 dollar, sparking a run on money market mutual funds industrywide. Minneapolis-based Ameriprise and its independent-broker-dealer subsidiary Securities America Inc. of Omaha, Neb., filed the suit in federal court in Minneapolis alleging that The Reserve of New York secretly notified institutional investors of the fund’s exposure to New York-based Lehman Brothers Holdings Inc. debt. “The notion that The Reserve would secretly tip investors with material non-public information and create a ‘run’ on the Reserve Primary Fund is absurd,” the company wrote in a statement on its website. “The fund’s portfolio holdings were available to any investor who asked, including the people who have sued us … When the dust settles, we are confident that the ‘insider trading’ allegations will be dismissed.”

Latest News

Retirement plan defaults leave key participant decisions unresolved
Retirement plan defaults leave key participant decisions unresolved

New Allspring research finds 401(k) participants want guidance on income and rollovers, not just portfolio automation.

Global equity release market set to triple, with US leading growth
Global equity release market set to triple, with US leading growth

Aging homeowners hold record housing wealth - but most advisors still aren't bringing it into retirement plans

Retiree alleges advisor withheld $600K through real estate LLC web
Retiree alleges advisor withheld $600K through real estate LLC web

$1.7M invested from an inheritance. Then the phone went dead.

SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception
SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception

The pre-IPO platform sold $430M in units while allegedly rigging prices behind the scenes.

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor