The Reserve Primary Fund was a large money market mutual fund.
On September 16, 2008, during the Global financial crisis of September–October, 2008, it lowered its share price below $1 ("breaking the buck") because of exposure to Lehman Brothers debt securities. This resulted in demands from investors to return their funds as the financial crisis mounted. Normally, the net asset value of money market funds is kept at $1.
The Reserve had multiple other funds frozen because of this failure. It has liquidated a few funds, and post periodic updates about plans to liquidate other funds on their website.
As of October 27, 2009, more than $3.5 billion sat in the Primary fund, most in a special reserve held aside to be used for costs and expenses, including legal fees. In November 2009, a U.S. district judge ordered the fund to make pro-rata distribution of almost all remaining assets to shareholders. As of December 2014, the fund had paid out 99.1 cents per share.