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NEW YORK, March 31 (Reuters) - Third Avenue Management, its founder Martin Whitman and other defendants have reached a $14.25 million settlement of a lawsuit by investors in a junk bond mutual fund they oversaw that collapsed in December 2015.
The preliminary accord resolves claims the defendants failed to ensure that the Third Avenue Focused Credit Fund had enough liquidity to avert a demise, and the fund misrepresented its ability to properly value securities it owned.
Affiliated Managers Group Inc, which holds a majority stake in Third Avenue, previously set aside money to cover the settlement, which requires court approval. (Reporting by Jonathan Stempel in New York; Editing by Cynthia Osterman)