CLEVELAND, Oct. 16, 2008 (GLOBE NEWSWIRE) -- Landskroner - Grieco - Madden, Ltd. today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or held the shares of the Primary Fund ("Primary Fund" or the "Fund") (Nasdaq:RFIXX) money market mutual funds offered by The Reserve Fund during the period from September 28, 2007 to September 16, 2008, inclusive (the "Class Period"), including purchasers and holders in connection with its September 28, 2007 offering (the "Offering").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 18, 2008. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jack Landskroner of Landskroner - Grieco - Madden, Ltd. at 866/522-9500 (toll free) or 216/522-9000, or via e-mail at jack@lgmlegal.com. If you are a member of this class, you can view a copy of the complaint as filed at http://www.lgmlegal.com at filed complaints. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges The Reserve Fund, its parent and affiliates and certain of its officers and trustees with violations of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940. The Reserve Fund is a cash management vehicle for institutions, banks, brokerages, advisors and individual investors and is an open-end, management investment company.
On September 16, 2008, The Reserve Fund announced with respect to the Primary Fund that the value of the debt securities issued by Lehman Brothers Holdings, Inc. (face value $785 million) and held by the Primary Fund had been valued at zero and, as a result, the net asset value of the Primary Fund was $0.97 per share. This was major news, as this was only the second time in history that a money market fund had "broken the buck" -- that is, reported a share's value was less than a dollar.
According to the complaint, the true facts, which were omitted from the Prospectus and other statements made by defendants during the Class Period, were as follows: (a) the Fund was no longer adhering to the stated objectives of preserving capital, but in an effort to achieve greater yields was pursuing riskier instruments; (b) despite the fact that many observers believed Lehman would be the next Wall Street failure after Bear Stearns collapsed in March 2008, the Fund continued to hold large amounts of Lehman commercial paper; and c) the Fund's internal controls were inadequate to prevent defendants from taking on excessive risk.
Plaintiff seeks to recover damages on behalf of all purchasers or holders of the Primary Fund during the Class Period, including purchasers and holders in connection with the Offering (the "Class"). The plaintiff is represented by Landskroner - Grieco - Madden, Ltd., which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Landskroner - Grieco - Madden, Ltd. is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies. The Landskroner - Grieco - Madden, Ltd. website (http://www.lgmlegal.com) has more information about the firm.