NEW YORK, Sept. 10, 2003 (PRIMEZONE) -- Wolf Popper LLP has filed a class action securities lawsuit in the United States District Court for the Southern District of New York, Case No. 03-Civ-6969, charging improper trading practices at mutual fund companies including Strong Financial Corporation. The Complaint is brought on behalf of persons who acquired, redeemed or owned mutual fund shares of Strong Financial Corporation's ("Strong") Strong Growth Funds, Strong Value Funds, Strong Advisor Mid Cap Growth Fund, and Strong Income Funds, from September 9, 2000 through September 2, 2003 (the "Class Period"), against Strong, and its subsidiary, Strong Capital Management, Inc. ("Strong Capital"), pursuant to the prospectus therefor. The Complaint charges violations of Section 11 of the Securities Act of 1933 for false and misleading statements and omissions in the prospectuses, and common law breach of fiduciary duty.
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 Strong, Janus, Bank of America, and Bank One 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: the Strong Growth Funds (which consist of the Strong Blue Chip Fund (SBCHX), Discovery Fund (STDIX), Endeavor Fund (SENDX), Enterprise Fund (SENTX), Growth Fund (SGROX), Growth 20 Fund (SGRTX), Large Cap Growth Fund (STRFX), Large Company Growth Fund (SLGIX), and U.S. Emerging Growth Fund (SEMRX)), the Strong Value Funds (consisting of the Strong All Cap Value Fund, Dividend Income Fund (SDVIX), Dow 30 Fund (SDOWX), Mid Cap Disciplined Fund (SMCDX), Small Company Value Fund (SCOVX), and Strategic Value Fund), the Strong Advisor Mid Cap Growth Fund (consisting of Class A, B, C, and Z shares) (SMDCX), and the Strong Income Funds (consisting of the Strong Corporate Bond Fund (STCBX), Corporate Income Fund (SCORX), Government Securities Fund (STVSX), High-Yield Bond Fund (STHYX), Short-Term Bond Fund (SSTBX), Short-Term High-Yield Bond Fund (STHBX), and Short-Term Income Fund (SSHOX)); Bank One's One Group "Equity Funds" series; the Janus Mercury Fund and the Janus High-Yield Fund; and Bank of America's "Nations Funds".
Class members who desire to be appointed lead plaintiff in this action must file a motion with the court no later than November 4, 2003. 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:
Wolf Popper LLP Michael A. Schwartz, Esq. Andrew E. Lencyk, Esq. Mark Marino 845 Third Avenue, New York, NY 10022 Tel.: 212.759.4600 or 877.370.7703 (toll free) Fax: 212.486.2093 or 877.370.7704 (toll free) Email: mschwartz@wolfpopper.com alencyk@wolfpopper.com mmarino@wolfpopper.com irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca