NEW YORK, Oct. 22, 2008 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announced today that a class action lawsuit, Case No. 08-cv-05213, has been filed on behalf of investors of First Trust closed-end bond funds, which include: First Trust Strategic High Income Fund (NYSE:FHI), First Trust Strategic High Income Fund II (NYSE:FHY) and First Trust Strategic High Income Fund III (NYSE:FHO) (collectively referred to as the "First Trust Funds"). Potential class members should consider whether they should participate in the class action or file an individual securities arbitration claim.
According to the Complaint, the Defendants, including First Trust Portfolios, First Trust Advisors, Hilliard Lyons Asset Management and Valhalla Capital Partners, issued false and misleading statements regarding the First Trust Funds' financial results and portfolio compositions. Additionally, the Complaint alleges that the First Trust Funds' prospectuses and registration statements contained misrepresentations and omissions including that: (a) the First Trust Funds lacked effective controls and hedges to minimize the risk of loss from mortgage delinquencies which affected a large part of their portfolios; (b) the First Trust Funds lacked effective internal controls to ensure that the First Trust Funds would remain in compliance with restrictions and limitations related to their investment portfolios and strategies; (c) the extent of the First Trust Funds' liquidity risk due to the illiquid nature of a large portion of the First Trust Funds' portfolios was omitted; (d) the extent of the First Trust Funds' risk exposure to mortgage-backed assets was misstated; and (e) the extent to which the First Trust Funds' portfolios were subject to fair value procedures was misstated.
Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has lost $50,000 or more in First Trust Funds, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered significant losses. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you lost $50,000 or more in the First Trust Funds and you wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.