After six years of litigation—and more than a year after losing before the U.S. Supreme Court—the Securities and Exchange Commission is giving up on its market-timing case against Gabelli Asset Management.
Following a series of settlements and the SEC’s decision to end pursuit of Marc Gabelli in August, that case was down to allegations against just one man, Gabelli executive Bruce Alpert. But, on Friday, the SEC said it had dismissed even those claims, ending a lawsuit that began in April 2008.
The SEC had alleged that Gabelli and Alpert had approved hedge fund Folkes Asset Management’s market-timing of their firm’s mutual funds without disclosing the practice to the funds’ boards and while also barring other investors from market-timing. Gabelli and Alpert denied wrongdoing—and also noted that the SEC had failed to sue them before the five-year statute of limitations expired, an argument accepted last February by the Supreme Court.