SEATTLE, Dec. 1, 2008 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP today announced an investigation into the Reserve Yield Plus Fund (Nasdaq:RYPQX) at the request of investors, regarding the practices of TD Ameritrade and the Reserve in marketing and selling the fund based on claims they violated securities laws and obligations to their investors. The Reserve Yield Plus Fund's other classes of shares are traded under the ticker symbols (Nasdaq:RYPTX) (Nasdaq:RYPJX) (Nasdaq:RYPQX).
If you or your group invested in the Reserve's Yield Plus Fund through TD Ameritrade, please contact plaintiff's counsel Reed Kathrein at reed@hbsslaw.com or (510) 725-3000.
Hagens Berman is investigating filing a class-action lawsuit on behalf of investors, as well as the possibility of petitioning the court for injunctive relief, ordering the fund to return investments currently frozen by the fund.
In May 2005, the Reserve Short-Term Trust filed a registration statement with the SEC including a prospectus and statement of additional information and the Yield Plus Funds began selling shares in June and August 2005. The prospectus emphasized the fund's focus -- to seek as high a level of current income as is consistent with the preservation of capital and liquidity. The prospectus characterized the fund as an enhanced cash fund, focusing on the safety of principal and liquidity, and as seeking to maintain "a stable NAV of $1.00 per share."
The prospectus also stated, "Because the Fund seeks to maintain a stable $1.00 NAV, you are not likely to recognize a gain or loss on the redemption or exchange of shares." The fund was heavily marketed and sold by TD Ameritrade as a money market fund, or as having the same characteristics as a money market fund.
Hagens Berman is investigating the marketing and sales tactics of the fund, and whether, the Reserve, TD Ameritrade and other officers made false statements to investors in an effort to sell funds and continue holding those already purchased.
In September 2008, news came that the fund had "broken the buck" and stopped all redemptions. The true value of the shares is no longer being reported. While it holds in excess of $500 million in cash, it is no longer making redemptions to investors who need their cash.
The investigation includes reviewing alleged misstatements made by the Reserve and TD Ameritrade. If you have information relating to this investigation or wish to be kept apprised of this investigation, view more at www.hbsslaw.com/reserve.
Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago, Phoenix and New York has taken a leading role in many important actions on behalf of defrauded investors. For example, recently the firm was appointed Lead Counsel in the Schwab YieldPlus securities litigation (www.hbsslaw.com/schw). The Hagens Berman Web site (www.hbsslaw.com) has more information about the firm.