New York Attorney General Eliot Spitzer said his office reached a $100 million settlement with Pilgrim Baxter & Associates Ltd. to resolve charges that the mutual fund company allowed improper trades of shares in its family of funds.

Under terms of the settlement that were reached in conjunction with the Securities and Exchange Commission, Pilgrim Baxter agreed to disgorge $40 million to injured investors and pay $50 million in civil penalties.

In a separate agreement with Spitzer’s office, Pilgrim Baxter agreed to reduce its management fees by 3.16 percent over a five-year period, a reduction valued at $10 million, according to a release from Spitzer’s office.