Jim Sutcliff, chief executive of Old Mutual, South Africa’s largest insurer, declined to specify a dollar amount Old Mutual would seek from Harold Baxter and Gary Pilgrim, Reuters reported. “We are unhappy with them (the founders) and we will now pursue the matter,” Sutcliffe told Reuters, adding that Old Mutual would prefer to settle the matter outside the courts. “We have not commenced legal action but we know it is a possibility.”
Monday, Old Mutual said it would pay $100 million to settle allegations of abusive trading in mutual fund shares at Pilgrim Baxter, according to announcements from the New York state Attorney General’s office and the U.S. Securities and Exchange Commission (SEC).While not admitting any wrongdoing, the Wayne, Pennsylvania-based fund complex will return $40 million to injured investors and pay $50 million in civil penalties under the terms of a deal also involving the SEC.
In a separate agreement with the state of New York, PBA said it would reduce management fees by 3.16% over a five-year-period, a $10 million reduction. However, the settlement does not include Pilgrim and Baxter, who are still under investigation, and who resigned from the firm last November.