NEW YORK, March 19, 2004 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Rudman, LLP announced today that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of clients of American Express Financial Advisors, Inc. ("AEFA") who purchased mutual funds in the American Express family of mutual funds, which are managed by the American Express Company ("AEC") (NYSE:AXP), between March 10, 1999 and February 9, 2004 (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/show_case.asp?ccode=255&pcode=10&pp=4.
The complaint charges AEC, American Express Financial Corporation ("AEFC"), and AEFA with violations of Securities Exchange Act of 1934 (the "Exchange Act"), among other claims, and for common law breach of fiduciary duties. According to the Complaint, AEFA, through its financial advisors, failed to disclose that their recommendations were based not on their understanding of their client's financial personal needs and stage in life, but rather, solely or primarily on their incentives to increase assets under AEFC's management. Moreover, the defendants failed to disclose that they had revenue sharing arrangements with 11 preferred funds and such revenue sharing agreements clearly presented conflicts of interest, pitting the financial interest of the AEFA advisors against that of its clients. Rather than disclose these conflicts, defendants sought to conceal the truth in order to generate greater fees for themselves.
If you were an AEFA client and bought shares or units of any funds in the American Express family of mutual funds between March 10, 1999 and February 9, 2004 , inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 3, 2004. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/template8.asp?pcode=6&pp=1. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock and New York.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com.