A U.K.-based hedge fund that was sued by the Securities and Exchange Commission on Thursday said the lawsuit is “utterly misguided,” and vowed to fight the charges.

Headstart Advisers Ltd, is accused of taking $198 million in profits by using deceptive market timing and late trading of mutual funds several years ago.

On Friday, Headstart told Reuters the trading activity at issue was reviewed by Britain’s Financial Services Authority and was resolved.

"The FSA was satisfied, as Headstart is, that there was nothing improper or irregular in the actions now complained of," the fund said. "Headstart is confident that the complaint is utterly misguided and it will vigorously defend the SEC's contentions."

The Headstart case is the second lawsuit by the SEC against a UK hedge fund over mutual fund trading practices.

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