COLCHESTER, Conn., Jan. 13, 2007 (PRIME NEWSWIRE) -- On January 12, 2007, Scott+Scott, LLP, filed a class action against Capital Group Companies, Inc., Capital Research and Management Co., and American Funds Distributors Inc. (collectively the "Defendants") in the U.S. District Court for the Central District of California. The action is on behalf of all persons or entities that purchased one or more of the funds which were distributed by American Funds Distributors ("AFD Funds") during the period January 1, 2000 through March 23, 2005, inclusive (the "Class Period"), for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Complaint alleges that Defendants failed to disclose a deceitful and unlawful course of conduct in which they participated in an illicit kickback scheme which operated to the detriment of investors in the AFD Funds.
If you purchased one or more of the AFD Funds during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than February 19, 2007. Any purported class member may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, www.scott-scott.com, for more information. There is no cost or fee to you.
According to the Complaint, during the Class Period, Defendants participated in an illicit kickback scheme which operated to the detriment of investors in the AFD Funds. Defendants actively concealed their use and improperly used hundreds of millions of dollars in assets of the AFD Funds for the payment of illicit incentives and illegal kickbacks to cause broker-dealers to actively promote AFD Funds. Plaintiff further alleges that Defendants actively concealed these conflicts of interest involving AFD Funds from plaintiff and other members of the Class, thereby depriving them of necessary information for making investment decisions.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/