Reserve Primary Fund, the failed $62.5 billion money-marketfirm, begins trial today on civil claims by the U.S. Securities andExchange Commission that it misled shareholders about the safety ofits fund after it lost money on Lehman Brothers Holdings Inc.debt.

Reserve, which held $785 million in Lehman debt, caused a run onmoney-market funds after its net asset value fell below $1 a shareon Sept. 16, 2008, the day after Lehman filed the biggestbankruptcy in history. The failure of Reserve, the first money fundin 14 years to “break the buck,” contributed to a global financialcrisis.

The SEC sued Reserve, founder and Chief Executive Officer BruceR. Bent and his son, President Bruce Bent II, in May 2009. The SECaccuses the Bents of violating federal securities laws by makingmisleading statements to investors and trustees in the run-up tothe collapse of the fund.