BALA CYNWYD, Pa., March 19, 2004 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of clients of American Express Financial Advisors, Inc. ("AEFA") who purchased mutual funds in the American Express family of mutual funds, which are managed by the American Express Company (NYSE:AXP) ("AEC") between March 10, 1999 and February 9, 2004 (the "Class Period") seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"), the Investment Advisers Act of 1940 (the "Investment Advisers Act") and common law.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges AEC, American Express Financial Corporation ("AEFC"), and AEFA with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. According to the Complaint, AEFA, through its financial advisors, failed to disclose that their recommendations were based not on their understanding of their client's financial personal needs and stage in life, but rather, solely or primarily on their incentives to increase assets under AEFC's management. Moreover, the defendants failed to disclose that they had revenue sharing arrangements with 11 preferred funds and such revenue sharing agreements clearly presented conflicts of interest, pitting the financial interest of the AEFA advisors against that of its clients. Rather than disclose these conflicts, defendants sought to conceal the truth in order to generate greater fees for themselves.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than May 3, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You may retain Schiffrin & Barroway, LLP, or other counsel of your choice, to serve as your counsel in this action.