The Bents have been cleared of fraud charges in their case regarding the death of their Reserve Primary Fund during the 2008 financial crisis.

To read the full, continuing saga of the collapse of the Reserve Primary Fund and the ensuing legal battle, see MFWire's living timeline.

According to the Wall Street Journal, the jury only found the Bents liable of one claim of negligence.

“We’re very pleased,” Bruce Bent II said, according to the WSJ.

The SEC accused the Bents of intentionally misleading investors after Lehman Brothers folded on Sept. 15, 2008. The Primary Fund eventually broke the buck despite the Bents saying they “intended” to protect the NAV.

The SEC issued the following statement after the verdict, fousing on the one charge the jury found the Bents liable of:

Today's verdict of liability sends the message that fund executives cannot withhold from investors and trustees key information about their fund’s vulnerability. This case, along with our actions against more than 100 other entities and individuals, demonstrates our continuing commitment to pursuing cases arising out of the financial crisis,” said Robert Khuzami, Director of Enforcement.

SEC lawyers did not comment to the press in the courtroom.  

Edited by: Ben Geier


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