Reserve Primary Fund Settles Lawsuit for $54.9 Million
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Bruce R. Bent II, president of the $62.5 billion Reserve Primary money-market fund that failed during the financial crisis, agreed to settle a shareholder lawsuit in an accord worth about $54.9 million.
Bent and his father, Bruce R. Bent, are among defendants that agreed to pay $10 million in cash, drop their claim for $42.4 million from a court-established expense fund, and to allow $2.5 million from the expense fund to go to shareholders. None of the defendants admitted wrongdoing as part of the proposed settlement to end a class-action lawsuit led by Third Avenue Institutional International Value Fund LP.