Boston, Nov 15: Boston-based Putnam Investments and parent company Marsh and McLennan face at least 16 lawsuits seeking class action status over allegations of improper mutual fund trading.

Marsh and Mclennan said in its quarterly filing yesterday with the securities and exchange commission that it also faced two direct shareholders actions and three "derivative" actions that named combinations of Marsh, Putnam, its trustees and others related to the company.
On Thursday, Putnam reached a partial settlement with the securities and exchange commission over allegations it committed civil fraud by failing to crack down on in-and-out fund trading, also called market timing, by some customers and employees. The settlement outlined remedial actions and a process for providing restitution to customers but left the amount of any fine undecided.
The partial settlement was sharply criticized by Massachusetts Secretary of State William Galvin and New York Attorney General Eliot Spitzer, two state regulators also investigating Putnam.
Galvin said his investigation would continue and said he expected to file new allegations against the company.
Market timing is not illegal but most funds prohibit the practice because it skims profits from longer-term shareholders. Regulators have said that funds that allowed selective market timing, despite policies against it, committed fraud.
Bureau Report