NEW YORK, Sept. 10, 2003 (PRIMEZONE) -- The Brualdi Law Firm has filed a class action securities lawsuit charging improper trading practices at mutual fund companies including Bank One Corp. (NYSE:ONE), Janus Capital Group., Inc. (NYSE:JNS), Bank of America Corp. (NYSE:BAC), and Strong Financial. The Complaint is brought on behalf of a class consisting of all persons other than defendants who purchased or otherwise acquired shares or other ownership units of one or more of the mutual funds in the One Group Mutual Fund family between October 1, 1998 and July 3, 2003, inclusive, and against the trustees of One Group Mutual Funds (the "One Group"), One Group's manager and investment advisor and the One Group itself. The Complaint charges, inter alia, violations of The Investment Companies Act of 1940 and violation of The Common Law.
The Complaint alleges that during the Class Period, the above-named mutual fund companies engaged in illegal and/or improper trading practices, in concert with certain institutional traders, which caused financial injury to the shareholders of the subject mutual funds, in return for substantial fees and other income for themselves and their affiliates. The complaint alleges that the schemes at Bank One, Janus, Bank of America, and Strong took two primary forms. First is the "late trading" of mutual fund shares by select customers of the fund (including hedge funds). Specifically, the complaint alleges that certain mutual fund investors of the above named fund companies, including Canary Capital Partners, LLC and Canary Investment Management, LLC (collectively, "Canary"), improperly arranged with defendants that orders placed after 4 p.m. on a given day would illegally receive that day's price (as opposed to the next day's price, which the order would have received had it been processed lawfully). This allowed Canary and other mutual fund investors who engaged in the same wrongful course of conduct to capitalize on post 4:00 p.m. information, while those who bought their mutual fund shares lawfully could not.
The complaint further alleges that defendants engaged in wrongful conduct known as "timing." Timing is an investment technique involving short-term, "in and out" trading of mutual fund shares, designed to exploit inefficiencies in the way mutual fund companies price their shares. It is widely acknowledged that "timing" inures to the detriment of long-term shareholders. Nonetheless, in return for investments from certain hedge funds and other traders that would increase fund managers' fees, fund managers entered into undisclosed agreements to allow them to "time" their funds. Funds affected include at least the following: Janus Mercury Fund and the Janus High-Yield Fund; Bank of America's "Nations Funds"; Bank One's "One Group" funds (the two international funds, the Small Cap Growth Fund, and two mid cap funds); and the Strong Growth 20 Fund, Strong Growth Fund, Advisor Mid Cap Growth Fund, Strong Large Cap Growth Fund, and Strong Dividend Income Fund.
If you bought, redeemed or owned shares of the funds noted above, are interested in serving as a lead plaintiff in this action, or would like to discuss this action, or if you have any questions concerning this Notice or your rights as a potential Class member, you may call or write:
The Brualdi Law Firm Richard Brualdi, Esq., Kevin T. O'Brien or Jeanette Olaya 29 Broadway, Suite 1515 New York, NY 10006 Tel.: 212.952.0602 or 877.495.1187 (toll free) Fax: 212.952.0608 Email: rbrualdi@earthlink.net website: www.brualdilawfirm.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca