
The SEC accused three AXA Rosenberg entities with securities fraud for concealing a significant error in the computer code of the quantitative investment model that they use to manage client assets. The error caused $217 million in investor losses. AXA Rosenberg Group LLC, AXA Rosenberg Investment Management LLC, and Barr Rosenberg Research Center LLC agreed to settle the case by paying $217 million to harmed clients plus a $25 million penalty. For more info visit https://www.sec.gov/news/press/2011/2011-37.htm