Just a day after cheering the $90 million settlement with New York and federal regulators by Pilgrim Baxter for abusive mutual fund trading, the South African insurer Old Mutual told Reuters it wants to further punish the company to the tune of going after founders Gary Pilgrim and Harold Baxter for additional compensation.
Old Mutual, the largest insurer in South Africa, was caught in the wheels of Pilgrim Baxters improper trading last year, and wants to make sure it gets what its investors deserve. Originally, Old Mutual CEO Jim Sutcliffe had said, "I am pleased that PBA has now reached a settlement with the regulators and am keen to put this matter behind us." But in an interview with Reuters, he changed his tune.
"We are unhappy with [founders Pilgrim and Baxter] and we will now pursue the matter," Sutcliffe said. He added, "We have not commenced legal action, but we know it is a possibility. Sutcliffe did not go into specifics as to how much money his company would seek.
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