Virtus Investment Partners Inc. will pay $22 million to settle a class action alleging it lied to investors about the performance of its funds.
Judge William H. Pauley III of the U.S. District Court for the Southern District of New York granted final approval to the deal Dec. 4.
The settlement fund will be distributed among thousands of investor class members.
“Ultimately, this was a lengthy, hard fought litigation and there is no indication that the proposed settlement was anything but the result of an arm’s length negotiation,” the court said.
The court approved an attorneys’ fee request of $5.5 million, 25 percent of the settlement fund, and $900,000 in litigation expenses.
The fees won’t be disbursed until 75 percent of the settlement fund is distributed to class members, the court ordered.
It also authorized a $5,600 incentive payment to the class representative.
Labaton & Sucharow LLP and Bernstein Litowitz Berger & Grossmann LLP represented the class.
Simpson Thacher & Bartlett LLP represented Virtus.
The case is In re Virtus Inv. Partners, Inc., 2018 BL 446000, S.D.N.Y., No. 15-1249, 12/4/18.