BALA CYNWYD, Pa. - Dec. 5, 2003 (PRIMEZONE) -- The law firm of Schiffrin & Barroway, LLP announces that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all purchasers, redeemers and holders of shares of PBHG Growth Fund (Nasdaq:PBHGX), PBHG Emerging Growth Fund (Nasdaq:PBEGX), PBHG Large Cap Growth Fund (Nasdaq:PBHLX), PBHG Select Growth Fund (Nasdaq:PBHEX)(formally known as PBHG Select Equity Fund (Nasdaq: PBHEX), and other PBHG Mutual Funds, which are managed by Pilgrim Baxter & Associates, Ltd. from November 13, 1998 through November 13, 2003, inclusive (the "Class Period").
Since the filing of this class action lawsuit, defendants Gary Pilgrim and Harold Baxter have subsequently been charged by state and federal regulators with allowing illegal short-term trading of Pilgrim Baxter's mutual funds. More specifically, on November 20, 2003, New York Attorney General Eliot Spitzer announced civil charges against defendants Gary Pilgrim and Harold Baxter, alleging that the pair facilitated illegal trading of their funds to benefit favored investors at the expense of typical shareholders. Additionally, on November 20, 2003, the United States Securities and Exchange Commission ("SEC") announced the filing of a civil injunctive action against defendants Gary L. Pilgrim, Harold J. Baxter, and Pilgrim Baxter wherein the SEC charged them with fraud and breach of fiduciary duty in connection with market timing of the PBHG Funds.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The following PBHG Mutual Funds are subject to this class action:
PBHG Growth Fund (NASDAQ: PBHGX) PBHG Emerging Growth Fund (NASDAQ: PBEGX) PBHG Large Cap Growth Fund (NASDAQ: PBHLX) PBHG Select Growth Fund (NASDAQ: PBHEX)(formally known as PBHG Select Equity Fund (NASDAQ: PBHEX)) PBHG Focused Fund (NASDAQ: PBFVX) (formally known as PBHG Focused Value Fund (NASDAQ: PBFVX)) PBHG Large Cap Fund (NASDAQ: PLCVX) (formally known as PBHG Large Cap Value Fund (NASDAQ: PLCVX)) PBHG Large Cap 20 Fund (NASDAQ: PLCPX) PBHG Strategic Small Company Fund (NASDAQ: PSSCX) PBHG Disciplined Equity Fund (NASDAQ: PBDEX) PBHG Mid-Cap Fund (NASDAQ: PBMCX) (formally known as PBHG Mid-Cap Value Fund (NASDAQ: PBMCX) PBHG Small Cap Fund (NASDAQ: PBSVX) (formally known as PBHG Small Cap Value Fund (NASDAQ: PBSVX) PBHG Clipper Focus Fund (NASDAQ: PBFOX) PBHG Small Cap Value Fund (NASDAQ: PSMVX) (formally known as TS&W Small Cap Value Fund, LLC) (NASDAQ: PSMVX) PBHG REIT Fund (NASDAQ: PBRTX) PBHG Technology & Communications Fund (NASDAQ: PBTCX) PBHG IRA Capital Preservation Fund (NASDAQ: PBCPX) PBHG Intermediate Fixed Income Fund (NASDAQ: PBFIX) PBHG Cash Reserves Fund (NASDAQ: PBCXX)
The complaint charges Pilgrim Baxter & Associates, Ltd, Harold J. Baxter, Gary L. Pilgrim, PBGH Funds, PBHG Fund Distributors, PBHG Mutual Funds, and Doe Defendants with violations of the Securities Act of 1933 (the "Securities Act"), the Securities Exchange Act of 1934 (the "Exchange Act"), the Investment Company Act of 1940 (the "Investment Company Act"), and for common law breach of fiduciary duties. The Complaint alleges that during the Class Period the PBHG Mutual Funds and the other defendants engaged in illegal and improper trading practices, in concert with certain institutional traders, which caused financial injury to the shareholders of the PBHG Mutual Funds. According to the Complaint, the Defendants surreptitiously permitted certain favored investors, including defendant Pilgrim's private investment limited partnership, to illegally engage in "timing" of the PBHG Mutual Funds whereby these favored investors were permitted to conduct short-term, "in and out" trading of mutual fund shares, despite explicit restrictions on such activity in the PBHG Mutual Funds' prospectuses.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than January 13, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.