MINNEAPOLIS, Nov. 19, 2008 (GLOBE NEWSWIRE) -- Lockridge Grindal Nauen P.L.L.P. today announced that it has commenced an investigation against Reserve Management Company, Inc. ("Reserve Management" or the "Company") for potential violations of the Employee Retirement Income Security Act of 1974 ("ERISA"). The investigation focuses on retirement plans, including plans for which Reserve Management serves as an Investment Manager or trustee, that offer the Reserve Primary Fund (the "Primary Fund"), a money market fund, to the participants and beneficiaries of the plans.
The Primary Fund has been marketed as investing in high quality, short term securities that "seeks to maintain a stable $1.00 share price." According to a lawsuit filed by Ameriprise Financial Services, Inc., the Reserve Fund and its agents secretly notified a number of major institutional investors that the Primary Fund had exposure to securities issued by Lehman Brothers Holdings, Inc., which filed for Chapter 11 bankruptcy protection, and that the bankruptcy would severely impact the value of the Primary Fund. The institutional investors purportedly redeemed approximately $41 billion of the Primary Fund's $64 billion under management at a redemption price of $1 per share. Remaining investors suffered losses as a result.
If you are a plan participant in a retirement plan that offers Reserve Management's Primary Fund, and you have suffered losses as a result of investing in this fund, or a fiduciary for such a plan, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Karen H. Riebel, Esq. (khriebel@locklaw.com) Carey R. Baehman (crbaehman@locklaw.com) Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 (612) 339-6900