Invesco, AIM settle lawsuit

DENVER — Invesco Funds Group and its sister company agreed Tuesday to pay $376.5 million and surrender another $75 million in fees to settle allegations of improper trading, a deal that will send nearly all the money to investors harmed by the practice.

Denver-based Invesco will pay $325 million to resolve litigation alleging it permitted excessive market-timing in its funds, Attorney General Ken Salazar said. Its sister company, AIM Advisors Inc. of Houston, agreed to pay $50 million.

The money will go to investors in what Salazar called one of the largest settlements yet in the market-timing scandal that has swept the $7 trillion mutual funds industry over the past year.

“I believe this sends the strongest message yet that mutual fund companies will be held accountable for behavior that harms consumers and average shareholders,” Salazar said.

Invesco also agreed to pay $1.5 million to Salazar’s office for investor education, future enforcement and attorney’s fees.

Amvescap, the London-based parent of the two companies, did not acknowledge wrongdoing under the settlements. It said it already has taken steps to better monitor trading activities and will hire an independent consultant to oversee distribution of the money to shareholders.

“We deeply regret the harm done to fund investors and have taken strong measures to prevent any recurrence,” Amvescap chairman Charles W. Brady said in a statement. “With these agreements, we rededicate our firm to maintaining the highest ethical standards.”