A New York federal judge ruled Wednesday that the Securities and Exchange Commission’s lawsuit against Reserve Management, its founder, Bruce Bent, Sr., and his son, Bruce Bent II, can proceed since the SEC adequately proved they committed fraud through misstatements and omissions of facts about the flagship Primary Fund.

At the next conference on the case, Securities and Exchange Commission v. Reserve Management Co. et al, on March 23, the court will determine whether a settlement is possible.

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