NEW YORK, Jan. 29, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Third Avenue Focused Credit Fund (“Third Avenue,” the “Company” or the “Fund”) (Nasdaq:TFCIX) (Nasdaq:TFCVX) in the United States District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased the Third Avenue stock from March 1, 2013 to December 10, 2015. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Act of 1933 (the “Securities Act”).
The Complaint alleges that, in violation of the Securities Act of 1933, the prospectuses and registration statements of this fixed income mutual fund contained material false or misleading statements regarding its liquidity. According to the Complaint, Third Avenue promised investors that it would place no more than 15% of its assets in illiquid securities, securities that could not be sold promptly at or near its carrying value. The Complaint alleges that an analysis of the Fund’s holdings in 2013, 2014, and 2015 has revealed that the Fund consistently held more than 15% of its net assets in illiquid securities. According to the Complaint, the Fund’s excessive illiquidity meant that it could not promptly sell assets to meet growing redemptions without unloading them at fire sale prices, leading it to suspend redemptions and shut down the Fund on December 10, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than March 29, 2016. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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