NEW YORK, May 11, 2009 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announced today that on May 7, 2009, the United States Court of Appeals for the Fourth Circuit, in a landmark ruling, reversed in substantial part a prior ruling of the United States District Court for the District of Maryland dismissing Wiggins v. Janus Capital Group. The suit is a securities fraud class action on behalf of a proposed class of purchasers of the common stock of Janus Capital Group, Inc. (NYSE:JNS) during the period July 21, 2000 through September 2, 2003 (the "Class Period") who still held their shares on September 3, 2003. The suit pleads claims for securities fraud in violation of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") against Janus Capital Group, Inc. and its subsidiary, Janus Capital Management, LLC.
The Court of Appeals ruled that plaintiffs' claim against Janus Capital Management for violation of section 10(b) of the Exchange Act had been properly pled pursuant to the Federal Rules of Civil Procedure and the Private Securities Litigation Reform Act of 1995. The Court also ruled that plaintiff had sufficiently pled a claim against Janus Capital Group for liability as a "control person" of Janus Capital Management, in violation of section 20(a) of the Exchange Act. The Court of Appeals remanded the matter to the District Court for further proceedings.
The lawsuit alleges that, throughout the class period, Janus Capital Group's stock had been artificially inflated because of false and/or misleading statements concerning defendants' policies towards short-term "market timing" trades in the mutual funds that Janus Capital Management ran. In September 2003, an investigation and proceeding commenced by the New York Attorney General's Office charged that, contrary to public representations, officers of Janus Capital Group and Janus Capital Management had secretly allowed "market timing" trades in certain mutual funds run by Janus Capital Management. New York's Attorney General also released evidence that supported these charges. It is further alleged that in response to this news and subsequent revelations concerning the market timing practices and their impact, Janus Capital Group's stock price declined materially, causing injury to class members.
Kirby McInerney LLP, the court-appointed lead counsel for plaintiff and the putative class, has specialized in complex litigation, including securities class action, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts that have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or this suit can be obtained through Kirby McInerney LLP's website at http://www.kmllp.com.