USA Today reports that State and federal regulators took action Tuesday against Putnam Investments and two of its former investment officers, the first formal accusation of wrongdoing against a mutual fund company over "market timing" trading practices in mutual funds.

The actions represent the first steps of civil lawsuits, outlining material facts. But they do not represent criminal charges. Mutual funds are generally intended for long-term investors, and prices are generally set once a day. But if allowed to move quickly in and out of funds, investors can sometimes take advantage of late-day information before the new prices are set.