Court Sets Deadline for Objections to Reserve Primary Plan

A U.S. district court has given investors in the Reserve Funds’ Primary Fund until July 22 to object to the Securities and Exchange Commission’s plan to distribute assets on a pro rata basis. Of the fund’s original $63 billion in assets, $4.55 billion has yet to be returned to investors.

Following this first round of filings, Reserve has until Aug. 21 to respond to those objections.

The Primary Fund broke the buck on Sept. 15, 2008 due to $785 million in Lehman Brothers bonds, which became essentially worthless when it went bankrupt.