Louis Bacon’s Moore Capital Management has agreed to pay $48.4 million to settle a lawsuit alleging that the hedge fund firm manipulated platinum and palladium prices.
Reuters reported that the settlement was reached Wednesday before Judge William Pauley III of the U.S. District Court for the Southern District of New York.
According to an earlier eVestment report, the hedge fund was fined $25 million after the U.S. Commodity Futures Trading Commission accused a former Moore Capital portfolio manager of engaging in a practice called “banging the close” from November 2007 through May 2008, meaning he built up a substantial position toward the end of the trading day and then offset it. Moore Capital was also restricted from trading in the futures and options within 15 minutes of and during the closing period for platinum and palladium
New York-based Moore Capital manages about $12 billion in assets.