SAN FRANCISCO, April 19, 2004 (PRIMEZONE) -- The law firm of Girard Gibbs & De Bartolomeo LLP filed a class action lawsuit on April 19, 2004, on behalf of clients of American Express Financial Advisors, Inc. ("AEFA") who purchased mutual funds in the American Express family of mutual funds between March 10, 1999 and February 9, 2004 (the "Class Period"). The class action asserts claims against the American Express Company (NYSE:AXP) ("AEC"), American Express Financial Corporation ("AEFC") and AEFA under the Securities Exchange Act of 1934, the Investment Advisers Act of 1940 and common law. A copy of the complaint is available from the Court, or can be viewed on Girard Gibbs & De Bartolomeo LLP's website: http://www.girardgibbs.com/aefa.html.
The class action is pending in the United States District Court for the Southern District of New York under docket number 04-cv-02959. The class action is brought on behalf of AEFA clients who purchased units of AEC mutual funds during the Class Period.
According to the complaint, defendants breached their fiduciary duties to class members in violation of the Investment Advisers Act of 1940 and common law, and violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission, by issuing a series of material misrepresentations to AEFA clients during the Class Period. In particular, the complaint alleges that AEFA, through its financial advisors, purported to provide objective financial advisory services and investment advice based on each client's individual needs. In fact, AEFA had an undisclosed interest in steering clients into AEC Funds and certain other preferred funds, including, but not limited to, AIM Mutual Funds, Putnam Mutual Funds, Strong Mutual Funds and Van Kampen Mutual Funds, which were among the poorest performing mutual funds on the market. The complaint further alleges that class members paid AEFA substantial fees and believed they were receiving objective advice when, in fact, AEFA financial advisors advised their clients to purchase AEC Funds and certain other preferred funds solely to obtain lucrative management fees and "revenue sharing" fees. According to the complaint, as a result of defendants' fraudulent and manipulative conduct, AEFA violated its clients' trust and prevented its clients from making fully informed investment decisions.
If you are or were an AEFA client who purchased mutual funds in the American Express family of funds between March 10, 1999 and February 9, 2004, you may, no later than May 3, 2004, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain Girard Gibbs & De Bartolomeo LLP, or other attorneys, to serve as your counsel in this action.
Girard Gibbs & De Bartolomeo LLP is one of the nation's leading firms representing individual and institutional investors in securities fraud class actions and litigation to correct abusive corporate governance practices, breaches of fiduciary duty and proxy violations. For more information, please access the firm's web site, www.girardgibbs.com. To discuss this class action with us, please contact the following attorneys:
Daniel Girard Jonathan Levine Aaron Sheanin 601 California Street, Suite 1400 San Francisco, CA 94108 Phone number: (866) 981-4800 Email: mail@girardgibbs.com Website: http://www.girardgibbs.com/aefa.html
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca