Three affiliates of Federated Investors Inc. agreed to pay $72 million to settle market-timing and late-trading charges brought by the SEC. Under the settlement, Federated Investment Management Co., Federated Securities Corp. and Federated Shareholder Services Co. agreed to repay $27 million in illegal profits and pay a $45 million civil penalty, in addition to the $8 million previously paid Federated shareholders, SEC officials announced today.
Without admitting or denying the SEC's charges, Federated also agreed to stop the illegal conduct and to make changes in its governance structure and compliance efforts.
