Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against Calamos Global Dynamic Income Fund
NEW YORK, NY--(Marketwire - April 22, 2008) - Abraham, Fruchter & Twersky, LLP filed a class
action lawsuit in the United States District Court for the Southern
District of New York on behalf of all purchasers who acquired the Auction
Rate Cumulative Preferred Shares ("ARPS") of the Calamos Global Dynamic
Income Fund ("Calamos Fund" or the "Fund") (NYSE: CHW) pursuant and/or
traceable to a false and misleading registration statement and prospectus
(collectively, the "Registration Statement") issued in connection with the
September 2007 offering (the "Offering"). The complaint charges Calamos
Fund with violations of the Securities Act of 1933.
According to the complaint, on or about September 17, 2007, the Fund filed
its Prospectus for the Offering, which forms part of the Registration
Statement, and $350 million worth of the Fund's ARPS were sold to the
public at $25,000 per share.
The complaint alleges that the Registration Statement contained untrue
statements of material fact or omitted to state other facts necessary to
make the statements made therein not misleading and was not prepared in
accordance with applicable SEC rules and regulations. Specifically, the
true facts which were omitted from the Registration Statement were that:
(i) the purported "auctions" used by Calamos Fund to get the dividend rates
were not bona fide auctions at all, but rather a mechanism to maintain the
illusion of an efficient and liquid market for the ARPS so that the Calamos
Fund could continue to earn fees from the so-called auctions and from the
ongoing stabilizing of the market because of the lack of buyer demand; (ii)
the default interest rate set as a consequence of a failed auction is less
than the interest rate paid when auctions of certain competing municipal
auction rate securities ("MARS") offered directly by municipal issuers
fail; (iii) the ARPS suffer from an additional disadvantage compared to
MARS because the ARPS are securities which exist in perpetuity until such
time as the Fund calls them due while MARS have a set due date; and (iv)
the default interest rate as set would cause the ARPS to trade at a
discount to their par value if, and when, the auctions began to fail.
In the past few months, the market for auction rate securities has
collapsed, as all of the major broker-dealers have announced that they will
no longer purchase auction rate securities for their own accounts to ensure
that the auctions do not fail. In the past month, thousands of auctions run
by the broker-dealers failed. As a result, over $350 billion in auction
rate securities that were once offered as "cash equivalents" are now
illiquid, resulting in economic losses and severe hardships for investors.
Plaintiff seeks to recover damages on behalf of all purchasers of Calamos
Fund's ARPS pursuant and/or traceable to the September 17, 2007
Registration Statement (the "Class"). The Plaintiff is represented by
Abraham, Fruchter & Twersky, LLP which has extensive experience in
securities class action cases, having been ranked among the leading class
action law firms in terms of recoveries achieved by a survey of class
action law firms conducted by Institutional Shareholder Services.
If you would like to discuss this action or if you have any questions
concerning this notice or your rights as a potential class member or lead
plaintiff, you may contact: Jeffrey S. Abraham or Arthur J. Chen of
Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at
email@example.com or firstname.lastname@example.org, respectively. If you wish to serve
as lead plaintiff, you must move the Court no later than June 19, 2008. Any
member of the proposed class may move the Court to serve as lead plaintiff
through counsel of their choice, or may choose to do nothing and remain a
member of the proposed class.
Contact Information: Contact:
Jeffrey S. Abraham, Esq.
Arthur J. Chen, Esq.
Abraham, Fruchter & Twersky, LLP
One Penn Plaza, Suite 2805
New York, New York 10119
Tel.: (212) 279-5050