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Och-Ziff Doubles Reserve to $414 Million to Settle Probe

  • Company in talks with partners to commit up to $500 million
  • The shares rally 12% on news, the most since February
Updated on

Och-Ziff Capital Management Group LLC, the hedge fund firm run by Daniel Och, more than doubled the money it’s setting aside for a settlement with U.S. authorities and is in talks to raise capital from partners to help cover the cost. Shares rallied.

The firm reserved $214.3 million for the probe in the second quarter, bringing the total for the anticipated settlement to $414.3 million, the company said Tuesday in a statement. Chief Financial Officer Joel Frank said on a conference call today that settlement talks with the government are in advanced stages.