April 8, 2004 — Putnam Investments will pay $110 million to settle federal and state charges that it permitted so-called market timing trades in its mutual funds, the company and regulators said today.
Under the settlement, Putnam will pay $5 million in restitution to the funds and $50 million in penalties to settle allegations by the Securities and Exchange Commission that the company failed to disclose improper fund trading.
Putnam will pay another $5 million in restitution and $50 million in penalties to settle allegations by Massachusetts that the company failed to halt market timing by members of a labor union who had 401(k) retirement plans through Putnam.