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NEWS - DOL, SEC Reach Settlements with Western Asset Management

January 27, 2014 – The Department of Labor (DOL) has reached a settlement with Western Asset Management Company, a subsidiary of Legg Mason Inc.

This settlement is a result of an investigation that revealed the purchase of prohibited securities that resulted in losses to the accounts of nearly 100 employee benefit plans and investment funds holding plan assets. The settlement also resolves findings that the company engaged in prohibited cross-trading of securities in the accounts of other retirement plans and funds, which caused additional losses.

The settlement was achieved in coordination with the Securities and Exchange Commission (SEC) and requires Western Asset to restore a total of more than $17.4 million to employee benefit plans and other accounts, and to pay more than $3.6 million in penalties.

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