|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 2873 | Stocks | 11/10/2003
A class action has been filed against Bank of America Corporation (NYSE: BAC) and certain related firms by investors who purchased shares in any of the Nations mutual funds, managed by Bank of America, between October 1, 1998, and July 3, 2003. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the fund shares. The investors seek to recover compensatory damages for the loss of value of their securities.
The action charges that, throughout this time period, the defendants failed to disclose that they improperly allowed certain hedge funds, such as Canary Capital Partners, to engage in "late trading" and "timing" of the funds' securities. Late trades are trades received after 4:00 p.m. EST that are filled based on that day's net asset value, as opposed to being filled based on the next day's net asset value, which is the proper procedure under Securities and Exchange Commission regulations. Late trading allows favored investors to make use of market-moving information that only becomes available after 4 p.m. and has been compared to betting on a horse race that already has been run. Timing is excessive, arbitrage trading undertaken to turn a quick profit and which ordinary investors are told that the funds police. Late trading and timing injure ordinary mutual fund investors--who are not allowed to engage in such practices--and are acknowledged as improper practices by the funds. In return for receiving extra fees from Canary and other favored investors, Bank of America and its subsidiaries allegedly allowed and facilitated Canary's timing and late trading activities, to the detriment of class members, who paid, dollar for dollar, for Canary's improper profits. These practices were undisclosed in the funds' prospectuses, which falsely represented that the funds actively policed against timing and represented that post-4 p.m. EST trades would be priced based on the next day's net asset value, and that premature redemptions would be assessed a charge.
Funds InvolvedNations Capital Growth Fund At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest Several class actions have been filed against media holding company Belo Corporation (NYSE:BLC) and certain of its officers and directors by stockholders who purchased the company's common stock between May 12, 2003, and August 6, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed against Wet Seal, Inc., a specialty retailer operating stores selling women’s apparel and accessories, (NASDAQ: WTSLA) and certain of its officers and directors by stockholders who purchased the company’s common stock between January 9, 2003 and August 19, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against Home Depot, Inc. (HD), certain of its officers and directors by stockholders who purchased the company's common stock between May 29, 2001 and February 22, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The parties have reached a $10 million settlement in an SEC enforcement action filed against Gemstar-TV Guide International, Inc., (Nasdaq:GMST) on behalf of stockholders who purchased the company's common stock between 1999 and 2002. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. Persons eligible to take part in the settlement should contact the attorneys who prosecuted the action for more information. Several class actions have been filed against human resource manager Ceridian Corporation (NYSE:CEN) and certain of its officers and directors by stockholders who purchased the company's common stock between April 17, 2003, and July 19, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed against BearingPoint, Inc. (NYSE:BE), certain of its officers and directors by stockholders who purchased the company's common stock between August 14, 2003 and April 20, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. |
IT'S FREE
|
© 2000 - 2008 Copyright. All rights reserved nola3, llc.
