Reserve Primary Fund, the failed $62.5 billion money-marketfund, misled shareholders about the safety of its fund after itlost money on Lehman Brothers Holdings Inc. debt, a governmentlawyer told a jury.

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 the globalfinancial crisis.

The U.S. Securities and Exchange Commission sued Reserve,founder and Chief Executive Officer Bruce R. Bent and his son,President Bruce Bent II, in May 2009. The SEC accuses the Bents ofviolating federal securities laws by making misleading statementsto investors and trustees in the run-up to the collapse of thefund.

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