Janus Shells Out $18 Million, on SEC Orders
Litigation Reports
Janus Capital Management, an investment advisor to Janus Mutual Funds, reimbursed $18 million to more than 325,000 defrauded shareholders late last week as a first step in paying back more than $100 million, as ordered by the Securities and Exchange Commission.
In August of 2004, the SEC found that Janus Capital entered into market timing agreements with 12 entities, and failed to notify its shareholders. Market timing is a strategy where investors buy and sell frequently to try and profit from short-term market cycles.
The agreements permitted the 12 entities to perform more than the commonly allowed four transactions per year, without paying redemption fees. Since waiving these fees imposes the administrative and transaction costs of frequent trading on all the shareholders, Janus Capital had a conflict of interests with Janus Mutual Funds which it failed to disclose to the Board of Trustees.
The SEC censured Janus Capital and ordered it to pay $50 million dollars in disgorgement and $50 million in civil penalties, in addition to interest earned on the money since 2004, totaling more than $100 million.
Shareholders are to be reimbursed for their share of losses due to market timing, and for their share of advisory fees paid by funds that suffered losses during the period of the market timing. To distribute the money to the shareholders in the five affected mutual funds, Janus Capital hired Christopher M. James, an independent distribution consultant.
After a lengthy process of planning and discussion, James started the distribution process that will continue over the coming months.
Related listings
-
Israel high court suspends Palestinians’ evictions for now
Litigation Reports 03/02/2022Israel’s Supreme Court on Tuesday ruled that a group of families slated for eviction from a flashpoint east Jerusalem neighborhood can remain in their homes for the time being. The ruling could work to ease tensions in Jerusalem’s Sheikh ...
-
New Mexico Supreme court mediates clash on pandemic aid
Litigation Reports 11/20/2021New Mexico’s Supreme Court is considering whether state legislators should have a greater say in the spending more than $1 billion in federal pandemic aid. Arguments in the case were scheduled for Wednesday morning at the five-seat high court. ...
-
Court sides with Congress in battle for Trump’s bank records
Litigation Reports 12/01/2019A federal appeals court in New York on Tuesday upheld the legality of congressional subpoenas seeking President Donald Trump’s banking records but said sensitive personal information should be protected.A three-judge panel of the 2nd U.S. Circu...
East Greenwich, RI Family Law Office
The Law Office of Erica S. Janton offers a wide range of legal services in all areas of family law, encompassing divorce, paternity, adoption, child support, child custody and placement, post judgment modifications, mediation and other related issues.
Erica S. Janton has extensive experience in complex high asset and high conflict family law matters. For the last decade, Erica S. Janton has devoted her career to the family law, first as a mediator and then in her legal career as a family law attorney and mediator. Attorney Janton represents a large variety of clients and has earned a well-regarded reputation for resolving complex custody and high asset, high conflict divorce cases. When providing clients with representation as an attorney, she is a compassionate and staunch advocate who ensures that her clients are well informed of their options and the related process, and prepared for every possible scenario a client may encounter.
Erica S. Janton has extensive experience in complex high asset and high conflict family law matters and uses her experience within the family court arena to individually tailor strategies with each of her clients and provide realistic solution focused results.