Pacific Investment Management Company (Pimco), said recently, agreed to pay investors $ 92,000,000 to end its alleged manipulation of prices of bond futures contract class action lawsuit.
Currently manages more than 1.2 trillion U.S. dollars of investment bonds at Pacific Investment Management Company was accused of manipulating investors in May 2005 and 6 months of CBOT Treasury bond futures contract price. The lawsuit, the plaintiff asked the Pacific Investment Management Company to compensate investors up to 6 billion dollars in damage. Allegedly, the Pacific Investment Management Company to use its controlling stake to raise investors that will lower the prices of bonds sold so that investors greatly damage.
One accused the company's investors that Pacific Investment Management Company in June 2005 purchased a 10-year bond futures contract, in addition to related rights. The company is not for sale or liquidation of debt, but the rights of holders of debentures due in order to create an artificial shortage of bonds, causing investors have to buy high-priced purchase of bonds in June 2005 to make up for the "shortage", then investment Who are caught in the illusion of bond prices to fall, eager to sell, Pimco bond company also sold to raise prices, investors suffered losses.
Pacific Investment Management Company spokesman Mark - Gilbert Field (Mark Porterfield), said in a statement today: "Pacific Investment Management Company's goal is appropriate for all investment companies designed to maximize the benefits for customers. " But he Class action lawsuit declined to make any comment.