A federal judge has tossed out a Securities and Exchange Commission case against three former Putnam executives who it had accused of using accounting chicanery to hide a $4 million loss in Cardinal Health’s 401(k) plan that resulted from failing to invest funds in the plan on a day the market rose, The Wall Street Journal reports.
The SEC said the executives had absorbed the losses by moving them to other funds at the firm, but U.S. District Judge Nathaniel M. Gorton said the Commission’s case against Virginia Papa, Kevin Crain and Sandra Childs was “vague.”
However, the judge said, the SEC may still pursue its case against three other executives, who were not named.
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