Moore Capital settles platinum, palladium lawsuit for $48.4 mln
NEW YORK Aug 21 (Reuters) - Louis Bacon's Moore Capital Management has agreed to pay $48.4 million to settle a class-action lawsuit asserting that the hedge fund manipulated platinum and palladium prices, the plaintiff's lead attorney said on Wednesday.
The settlement was reached earlier on Wednesday before Judge William Pauley III of the U.S. District Court for the Southern District of New York, Christopher Lovell, the lead plaintiff's attorney, told Reuters in an email.
He is a partner at law firm Lovell Stewart Halebian Jacobson LLP.
A spokesman for New York-based Moore Capital, a prominent hedge fund, declined to comment.
In April 2010, the U.S. Commodity Futures Trading Commission (CFTC) fined Moore Capital $25 million for attempting to manipulate Nymex platinum and palladium futures prices from at least November 2007 through May 2008.
The U.S. regulator alleged the fund was entering trades in the last 10 seconds of trading in a manner designed to exert upward pressure on the settlement prices. The practice is known as "banging the close."
In addition to the fine, the CFTC restricted Moore Capital's trading activities for three years, including a two-year restriction of its trades within 15 minutes of and during the close in the platinum and palladium futures and options markets.
The firm neither admitted nor denied the charges, the U.S. commodity regulator said at the time.
The case is Platinum and Palladium Commodities Litigation, U.S. District Court, Southern District of New York, No. 10-cv-03617.
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