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Seligman Files Lawsuit against Spitzer

Firm says New York attorney general overstepped his authority.

Seligman Tuesday fought back against New York Attorney General Eliot Spitzer by filing a lawsuit charging Spitzer had overstepped his authority in investigating market-timing at the firm. Seligman says Spitzer's expanded investigation into fees takes him into territory clearly marked for the SEC.

In early 2004, Seligman disclosed that an internal review in late 2003 had revealed four market-timing agreements in the preceding three years. Later that year, the shop disclosed that the board had directed it to reimburse four funds a total of $2 million to make up for any harm done to shareholders; simultaneously, the shop announced that the SEC, NASD, and Spitzer were investigating.

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