(by Peter Van Bruggen)

Morningstar, a fund company, will possibly face Securities and Exchange Commission civil charges for violating securities laws.

The company is now trying to settle SEC charges as the U.S. regulator says Morningstar failed to correct false data on the activity of a mutual fund.

Morningstar’s founder Joseph Mansueto said the Securities and Exchange Commission has warned Morningstar that in case it was “reckless in its handling of data, it could be held liable for deceiving investors.” The Securities and Exchange Commission also demanded sufficient steps from the company to correct the information.

Mr. Mansueto unveiled that the real option for SEC to open probes was the fact that Morningstar published incorrect data on $20 million Rock Canyon Top Flight stock fund earlier this year making the fund to perform better.