LAWSUITS NEWS & LEGAL INFORMATION
Illegal Courting
Boston, MA: (Mar-05-08) The US Securities and Exchange Commission (SEC) brought charges against Fidelity Investments and 13 of its current or former employees, alleging that they improperly received gifts totaling more than $1.6 million. The suit, which named Peter Lynch among the 13 defendants, who was formerly a star manager at Fidelity's Magellan Fund. The commission's order stated that Fidelity accepted lavish gifts such as travel and entertainment from outside brokers who courted Fidelity's massive trading business.
Sources close to the case revealed that the parties had reached a settlement, in which the Fidelity agreed to pay an $8 million penalty to resolve the influence-peddling case. A spokeswoman for the Boston based company announced that the issue has now been settled with regulators, with no finding that Fidelity shareholders were harmed by the gifts its employees received. The company neither denied, nor accepted, any allegations in agreeing to settle, but has done so in order to avoid the risks and costs of litigation. [FOX BUSINESS: FIDELITY AGREES TO $8 MILLION SEC SETTLEMENT]
Published on Mar-6-08
Sources close to the case revealed that the parties had reached a settlement, in which the Fidelity agreed to pay an $8 million penalty to resolve the influence-peddling case. A spokeswoman for the Boston based company announced that the issue has now been settled with regulators, with no finding that Fidelity shareholders were harmed by the gifts its employees received. The company neither denied, nor accepted, any allegations in agreeing to settle, but has done so in order to avoid the risks and costs of litigation. [
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