Judge Deborah Batts of the United States District Court for the Southern District of New York on Wednesday dismissed most of the claims in the case that the SEC had filed against Marc Gabelli, son of Mario Gabelli and former manager of the Gabelli Global Fund, and Gabelli Funds chief operating officer Bruce Alpert.

"We're still evaluating the opinion," said Edward McDonald, a Dechert attorney who represents Alpert. "We're seriously considering approaching the SEC to ask that they act in the interest of justice and common sense and dismiss the remaining charges."

The complaint filed by the SEC on April 24, 2008 centers on an alleged undisclosed market timing arrangement with London-based hedge fund firm Folkes Asset Management, now known as Headstart Advisers.

The SEC alleged that Marc Gabelli authorized Headstart to place market timing trades in the fund, and neither he nor Alpert informed the board of directors that Headstart was permitted to market time while other market timers were blocked from doing so.

On Wednesday, Batts dismissed with prejudice the SEC's claims under Section 10(b) and Rule 10b-5 and Section 17 of the Exchange Act. Batts also dismissed with prejudice the SEC's requests for an injunction and for civil monetary penalties.

Gabelli and Alpert have 30 days to answer the remaining claim for disgorgement. 

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