After years of waiting, mutual-fund customers of Janus Capital Management LLC will receive payments due them from a 2004 settlement of market- timing allegations.
Paper checks should start heading out Aug. 15 and continue through the end of the year.
“Making these distributions is a priority for Janus,” said company spokesman James Aber.
Denver-based Janus in a 2004 settlement with the U.S. Securities and Exchange Commission agreed to provide $100 million in restitution to its customers.
Regulators allege that Janus and other mutual-fund groups allowed certain customers to make frequent trades in their funds in a way that harmed the interests of buy-and-hold customers.
Although frequent trading is not illegal, Janus in its prospectus materials discouraged the practice.
Investors in seven funds during defined periods are eligible for the restitution payments, which will come out of the company’s corporate treasury.
An outside party made the complex calculation of losses and will distribute the checks. Investors who suffered losses of less than $10 are not eligible for restitution.
Janus, which paid a heavy price in redemptions from the damage its reputation suffered, made several reforms to protect against frequent trading in its funds.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
