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Pimco to Pay $92 Million to Settle Market Manipulation Lawsuit

Pacific Investment Management Co., manager of the world’s biggest bond fund, agreed to pay $92 million to settle a private class-action lawsuit that accused it of manipulating the price of Treasury futures contracts.

Pimco, which manages about $1.2 trillion, was accused of cornering the market for contracts on the 10-year notes in May and June 2005 on the Chicago Board of Trade. The lawsuit, which sought as much as $600 million in damages, said that Pimco used its holdings to drive up the price for traders who had sold the securities short, betting their value would fall.