Alliance Capital reached a settlement with New York State Attorney General Eliot Spitzer and the SEC in December, and a little less than two months later, Morningstar is pulling its "consider selling" label from the fund group.

Chicago-based Morningstar caused a stir when it initially told investors to consider selling funds from groups involved in the scandal. Alliance was one of the firms it denounced. Alliance’s deal with regulators included a reduction in fees and restitution to shareholders, bringing the total cost of the settlement to an estimated $600 million when all is said and done.

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