Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Saturday, March 2, 2024 | Back issues
Courthouse News Service Courthouse News Service

SEC Whacks 3 Firms for $242 Million

WASHINGTON (CN) - AXA Rosenberg Group and the Barr Rosenberg Research Center will pay $242 million to settle securities fraud charges, the SEC said. The SEC accused the firms, and AXA Rosenberg Investment Management, of "concealing a significant error in the computer code of the quantitative investment model that they use to manage client assets. The error caused $217 million in investor losses."

The firms will cough up the $217 million, plus a $25 million fine, the SEC said.

"The SEC's order instituting administrative proceedings against the firms found that senior management at BRRC and ARG learned in June 2009 of a material error in the model's code that disabled one of the key components for managing risk. Instead of disclosing and fixing the error immediately, a senior ARG and BRRC official directed others to keep quiet about the error and declined to fix the error at that time," the SEC said in a statement.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.