SEC Drops Landmark Mutual Fund Case Against Pinnacle Advisors

The SEC’s first enforcement action targeting alleged violations of an Obama-era mutual fund liquidity rule is coming to an end after the agency agreed to drop the case against Pinnacle Advisors LLC, its trustees, and executives.

The Securities and Exchange Commission under Chairman Paul Atkins and the Pinnacle defendants agreed to dismiss the litigation with prejudice, according to a joint notice filed Friday in the US District Court for the Northern District of New York.

The SEC determined dismissal was appropriate “in the exercise of its discretion and as a policy matter,” the commission said in a release. A spokesperson ...