NEW YORK, Nov. 21, 2003 (PRIMEZONE) -- A class action lawsuit has been filed in United States District Court for the Western District of Pennsylvania, case number 03-CV-8323, on behalf of all persons or entities who purchased or otherwise acquired American Leaders Fund, Inc. (Nasdaq: FALBX) (Nasdaq: FALCX) (Nasdaq: FALFX) (Nasdaq: FALKX), Global Equity Fund (Nasdaq: FGEFX) (Nasdaq: FGEDX), Kaufmann Fund (Nasdaq: KAUBX) (Nasdaq: KAUCX) (Nasdaq: KAUFX), Market Opportunity Fund (Nasdaq: FMBBX) (Nasdaq: FMRCX), and other Federated Investment family of funds (the "Funds"), between November 1, 1998 and October 21, 2003, inclusive (the "Class Period"). The complaint names Marsh & McLennan Companies, Inc., Putnam Investments Trust, Putnam Investment Management LLC, Putnam Investment Funds, each of the Funds, and John Does 1-100.
The Funds, and the symbols for the respective Funds named below, are as follows:
Adjustable Rate Securities Fund (Nasdaq: FEUGX) (Nasdaq: FASSX)
Alabama Municipal Cash Trust (Nasdaq: ALMXX)
American Leaders Fund, Inc. (Nasdaq: FALDX) (Nasdaq: FALBX) (Nasdaq:FALCX) (Nasdaq: FALFX) (Nasdaq: FALKX)
Arizona Municipal Cash Trust (Nasdaq: AZMXX)
Automated Cash Management Trust (Nasdaq: ACCXX) (Nasdaq: ACMXX)
Automated Government Cash Reserves (Nasdaq: AGSXX)
Automated Government Money Trust (Nasdaq: AGMXX)
Automated Treasury Cash Reserves (Nasdaq: ATTXX)
Bond Fund (Nasdaq: FDBAX) (Nasdaq: FDBBX) (Nasdaq: FDBCX) (Nasdaq:ISHIX)
California Municipal Cash Trust (Nasdaq: CALXX) (Nasdaq: CAIXX) (Nasdaq: CACXX)
California Municipal Income Fund (Nasdaq: FCMIX) (Nasdaq: CMUIX)
Capital Appreciation Fund (Nasdaq: FEDEX (Nasdaq: CPABX) (Nasdaq: CPACX) (Nasdaq: CPAKX)
Capital Income Fund (Nasdaq: CAPAX) (Nasdaq: CAPBX) (Nasdaq: CAPCX) (Nasdaq: CAPFX)
Capital Preservation Fund
Communications Technology Fund (Nasdaq: FCTAX) (Nasdaq: FCTEX) (Nasdaq: FCTYX)
Connecticut Municipal Cash Trust (Nasdaq: FCTXX)
Conservative Allocation Fund (Nasdaq: FMCGX) (Nasdaq: FCGSX)
Equity Income Fund, Inc. (Nasdaq: FLEIFX) (Nasdaq: LEIBX) (Nasdaq: LEICX) (Nasdaq: LFEIX)
European Equity Fund (Nasdaq: EURAX) (Nasdaq: EURBX) (Nasdaq: EURCX)
Florida Municipal Cash Trust (Nasdaq: FLCXX) (Nasdaq: FLMXX)
Fund for U.S. Government Securities (Nasdaq: FUSGX) (Nasdaq: FUSBX) (Nasdaq: FUSCX)
GNMA Trust (Nasdaq: FGMAX) (Nasdaq: FGSSX)
Georgia Municipal Cash Trust (Nasdaq: GAMXX)
Global Equity Fund (Nasdaq: FGEIX) (Nasdaq: FGEFX) (Nasdaq: FGEDX)
Global Value Fund (Nasdaq: WUFAX) (Nasdaq: WUFBX) (Nasdaq: WUFCX)
Government Cash Series (Nasdaq: CTGXX)
Government Income Securities, Inc (Nasdaq: FGOAX) (Nasdaq: FGOBX) (Nasdaq: FGOCX) (Nasdaq: FGOIX)
Government Obligations Fund (Nasdaq: GOIXX) (Nasdaq: GOSXX) (Nasdaq: GORXX)
Government Obligations Tax-Managed Fund (Nasdaq: GOTXX) (Nasdaq: GTSXX)
Government Ultrashort Duration Fund (Nasdaq: FGUAX) (Nasdaq: FGUSX) (Nasdaq: FEUSX)
Growth Allocation Fund (Nasdaq: FMGPX) (Nasdaq: FMGSX)
Growth Strategies Fund (Nasdaq: FGSAX) (Nasdaq: FGSBX) (Nasdaq: FGSCX)
Growth Strategies Fund II
High Income Bond Fund II
High Income Bond Fund, Inc. (Nasdaq: FHIIX) (Nasdaq: FHBBX) (Nasdaq: FHICX)
High Yield Trust (Nasdaq: FHYTX)
Income Trust (Nasdaq: FICMX) (Nasdaq: FITSX)
Institutional High Yield Bond Fund (Nasdaq: FIHBX)
Intermediate Income Fund (Nasdaq: FIIFX) (Nasdaq: INISX)
Intermediate Municipal Trust (Nasdaq: FIMTX) (Nasdaq: FIMYX)
International Bond Fund (Nasdaq: FTIIX) (Nasdaq: FTBBX) (Nasdaq: IFTIBX)
International Capital Appreciation Fund (Nasdaq: IGFAX) (Nasdaq: IGFBX)(Nasdaq: IGFCX)
International Equity Fund (Nasdaq: FTITX) (Nasdaq: FIEBX) (Nasdaq: FIECX)
International High Income Fund (Nasdaq: IHIAX) (Nasdaq: IHIBX) (Nasdaq: IHICX)
International Small Company (Nasdaq: ISCAX) (Nasdaq: ISCBX) (Nasdaq: ISCCX)
International Value Fund (Nasdaq: FGFAX) (Nasdaq: FGFBX) (Nasdaq: FGFCX)
Kaufmann Fund (Nasdaq: KAUAX) (Nasdaq: KAUBX) (Nasdaq: KAUCX) (Nasdaq: KAUFX)
Kaufmann Small Cap Fund (Nasdaq: FKASX) (Nasdaq: FKBSX) (Nasdaq: FKCSX)
Large Cap Growth Fund (Nasdaq: FLGAX) (Nasdaq: FLGBX) (Nasdaq: FLGCX)
Liberty U.S. Government Money Market Trust (Nasdaq: LUGXX) (Nasdaq: LIBXX)
Limited Duration Fund (Nasdaq: FTRLX) (Nasdaq: FTRDX) (Nasdaq: FLDIX) (Nasdaq: FLDSX)
Limited Term Fund (Nasdaq: LTDFX) (Nasdaq: LTFSX)
Limited Term Municipal Fund (Nasdaq: LMINX) (Nasdaq: LMFSX)
Liquid Cash Trust (Nasdaq: LCTXX)
Managed Income Portfolio (Nasdaq: FMIPX) (Nasdaq: FIPSX)
Market Opportunity Fund (Nasdaq: FMAAX) (Nasdaq: FMBBX) (Nasdaq: FMRCX)
Maryland Municipal Cash (Nasdaq: MDMXX)
Massachusetts Municipal Cash Trust (Nasdaq: MMCXX)
Master Trust (Nasdaq: FMTXX)
Max-Cap Index Fund (Nasdaq: MXCCX) (Nasdaq: FISPX) (Nasdaq: FMXKX) (Nasdaq: FMXSX)
Michigan Intermediate Municipal Trust (Nasdaq: MMIFX)
Michigan Municipal Cash Trust (Nasdaq: MIIXX) (Nasdaq: MINXX) (Nasdaq: MIMXX)
Mid-Cap Index Fund (Nasdaq: FMDCX)
Mini-Cap Index Fund (Nasdaq: MNCCX) (Nasdaq: FMCPX)
Minnesota Municipal Cash Trust (Nasdaq: MNMXX) (Nasdaq: FEMXX)
Moderate Allocation Fund (Nasdaq: FMMGX) (Nasdaq: FMMSX)
Money Market Trust (Nasdaq: MMTXX)
Mortgage Fund (Nasdaq: FGFIX) (Nasdaq: FGFSX)
Muni and Stock Advantage Fund (Nasdaq: FMUAX) (Nasdaq: FMNBX) (Nasdaq:FMUCX)
Municipal Cash Series (Nasdaq: CMSXX) (Nasdaq: MCTXX)
Municipal Obligations Fund (Nasdaq: MFCXX) (Nasdaq: MOFXX) (Nasdaq:MOSXX)
Municipal Opportunities Fund, Inc. (Nasdaq: FMOAX) (Nasdaq: FMOBX) (Nasdaq: FMNCX) (Nasdaq: FMTFX)
Municipal Securities Fund, Inc. (Nasdaq: LMSFX) (Nasdaq: FMSBX) (Nasdaq: LMSCX)
Municipal Ultrashort Fund (Nasdaq: FMUUX) (Nasdaq: FMUSX)
New Jersey Municipal Cash Trust (Nasdaq: NJMXX) (Nasdaq: NJSXX)
New York Municipal Cash Trust (Nasdaq: NYCXX) (Nasdaq: FNTXX)
New York Municipal Income Fund (Nasdaq: NYIFX) (Nasdaq: NYIBX)
North Carolina Municipal Cash Trust (Nasdaq: NCMXX)
North Carolina Municipal Income Fund (Nasdaq: NCIFX)
Ohio Municipal Cash Trust (Nasdaq: FOHXX) (Nasdaq: OHIXX) (Nasdaq:OHTXX)
Ohio Municipal Income Fund (Nasdaq: OMIFX)
Pennsylvania Municipal Cash Trust (Nasdaq: PACXX) (Nasdaq: PAMXX) (Nasdaq: FPAXX)
Pennsylvania Municipal Income Fund (Nasdaq: PAMFX) (Nasdaq: FPABX)
Prime Cash Obligations Fund (Nasdaq: PCCXX) (Nasdaq: PCOXX) (Nasdaq: PRCXX)
Prime Cash Series (Nasdaq: CTPXX)
Prime Money Fund II
Prime Obligations Fund (Nasdaq: POIXX) (Nasdaq: PRSXX) (Nasdaq: POLXX)
Prime Value Obligations Fund (Nasdaq: PVCXX) (Nasdaq: PVOXX) (Nasdaq: PVSXX)
Quality Bond Fund II
Short-Term Income Fund (Nasdaq: FSTIX) (Nasdaq: FSISX)
Short-Term Municipal Trust (Nasdaq: FSHIX) (Nasdaq: FSHSX)
Short-Term U.S. Government Trust (Nasdaq: FSUXX)
Stock Trust (Nasdaq: FSTKX)
Stock and Bond Fund, Inc. (Nasdaq: FSTBX) (Nasdaq: FSBBX) (Nasdaq: FSBCX) (Nasdaq: FSBKX)
Strategic Income Fund (Nasdaq: STIAX) (Nasdaq: SINBX) (Nasdaq: SINCX) (Nasdaq: STFSX)
Tax-Free Instruments Trust (Nasdaq: TFIXX) (Nasdaq: TFSXX)
Tax-Free Obligations Fund (Nasdaq: TBIXX) (Nasdaq: TBSXX) (Nasdaq:TBTXX)
Tax-Free Trust (Nasdaq: FTFXX)
Total Return Bond Fund (Nasdaq: TLRAX) (Nasdaq: TLRBX) (Nasdaq: TLRCX)(Nasdaq: FTRBX) (Nasdaq: FTRKX) (Nasdaq: FTRFX)
Total Return Government Bond Fund (Nasdaq: FTRGX) (Nasdaq: FTGSX)
Treasury Cash Series (Nasdaq: CTTXX) (Nasdaq: CTWXX)
Treasury Obligations Fund (Nasdaq: TOCXX) (Nasdaq: TOIXX) (Nasdaq:TOSXX) (Nasdaq: TOTXX)
Trust for Government Cash Reserves (Nasdaq: TGCXX)
Trust for Short-Term U.S. Government Securities (Nasdaq: TUSXX)
Trust for U.S. Treasury Obligations (Nasdaq: TTOXX)
U.S. Government Bond Fund (Nasdaq: FEDBX)
U.S. Government Securities Fund: 1-3 Years (Nasdaq: FSGVX) (Nasdaq: UFSGIX) (Nasdaq: FSGTX)
U.S. Government Securities Fund: 2-5 Years (Nasdaq: FIGTX) (Nasdaq: FIGKX) (Nasdaq: FIGIX)
U.S. Treasury Cash Reserves (Nasdaq: UTIXX) (Nasdaq: TISXX)
Ultrashort Bond Fund (Nasdaq: FULAX) (Nasdaq: FULIX) (Nasdaq: FULBX)
Virginia Municipal Cash Trust (Nasdaq: VAIXX) (Nasdaq: VACXX)
The Complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933; Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; and Section 206 of the Investment Advisers Act of 1940. The Complaint charges that, throughout the Class Period, defendants failed to disclose that they improperly allowed the John Doe defendants to engage in "late trading" and "timing" of the Funds' securities. Late trades are trades received after 4:00 p.m. EST that are filled based on that day's net asset value, as opposed to being filled based on the next day's net asset value, which is the proper procedure under SEC regulations. Late trading allows favored investors to make use of market-moving information that only becomes available after 4:00 p.m. and has been compared to betting on a horse race that already has been run. Timing is excessive, arbitrage trading undertaken to turn a quick profit and which ordinary investors are told that the funds police. Late trading and timing injure ordinary mutual fund investors -- who are not allowed to engage in such practices -- and are acknowledged as improper practices by the Funds. In return for receiving extra fees from the John Doe defendants, Federated Investors, Inc. and its subsidiaries allowed and facilitated the John Doe defendants' timing and late trading activities, to the detriment of class members, who paid, dollar for dollar, for the John Doe defendants' improper profits. These practices were undisclosed in the prospectuses of the Funds, which falsely represented that the Funds actively police against timing and represented that post-4:00 p.m. EST trades will be priced based on the next day's net asset value and that premature redemptions will be assessed a charge.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.If you purchased or otherwise acquired any of the Funds described above, between November 1, 1998 and October 21, 2003 and sustained damages, you may, no later than December 23, 2003, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.