Billionaire Kirk Kerkorian’s Tracinda investment firm settled a regulator’s allegations that it was misleading about its plan to cut its stake in General Motors Corp., the U.S. Securities and Exchange Commission said on Wednesday.

According to the SEC, Tracinda had a plan in November 2006 to sell 28 million GM shares but only sold half because the bid offered by the broker-dealer was much lower than Kerkorian had expected. When Tracinda reported the sale of its 14 million shares, it failed to disclose that it had initially planned to sell 28 million shares, which is material information and in violation of SEC disclosure rules.

The SEC said Tracinda’s report was also misleading and violated securities rules because Tracinda said that the firm “might purchase or sell more GM stock, when there was only a remote possibility that it would buy any GM stock at that time.”

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