|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 3327 | Stocks | 04/16/2004
A class action has been filed against the Canadian Imperial Bank of Commerce, Canadian Imperial Holdings, Inc., and certain officers by investors who purchased any of the MFS family of mutual funds between January 1, 2001, and September 30, 2003. The actions claim that the defendants violated federal securities laws by failing to disclose that they improperly financed the late trading and timing of the funds’ shares by certain hedge funds. The investors seek to recover compensatory damages for the loss of value of their shares.
The funds involved, and their respective symbols are as follows: MFS Capital Opportunities Fund (MCOFX, MCOBX, MCOCX, MFCRX, MCOTX, EACOX, EBCOX, ECCOX, MCOIX) The action alleges that the bank, Canadian Imperial Holdings, Inc. (CIHI) and Paul A. Flynn (Managing Director of Equity Investments at CIHI) aided and abetted breaches of fiduciary duties by the officers, directors and other fiduciaries of the MFS funds. Throughout the applicable period, the defendants allegedly failed to disclose that they improperly financed the late trading and timing of the funds’ shares by certain hedge funds. Late trading refers to the practice of allowing an investor to purchase mutual find shares after 4:00 P.M. EST at that day’s price, as opposed to the next day’s price, as mandated by applicable SEC rules. Timing is the frequent trading of mutual fund shares. Both practices are profitable to the privileged investors that are allowed to late trade and/or market time, but damage the funds and their shareholders. Defendant Flynn allegedly negotiated and structured loan agreements and swaps, financed by CIHI, that gave the hedge funds the capital required to late trade and market time the funds’ shares using leverage of at least 3:1. The financing CIHI provided to the hedge funds, with knowledge that the monies would be used to late trade and market time the funds’ shares, allowed the hedge funds to engage in improper trading more often, and for larger volumes of shares, than they otherwise could have, thereby harming ordinary investors. On February 3, 2004, the New York Attorney General filed a criminal complaint in New York State Court, charging Flynn with several felonies, including a scheme to defraud in the first degree and grand larceny in the first degree, among other charges, for his role in the late trading/market timing debacle. If you purchased any of the listed MFS mutual fund shares during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by June 8, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member. 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 A class action has been filed against Orphan Medical, Inc. (ORPH), certain of its officers and directors by stockholders. 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 DreamWorks Animation SKG, Inc. (NYSE:DWA), certain of its officers and directors by stockholders who purchased the company's common stock between October 27, 2004 and May 10, 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. A class action has been filed against Ace Limited, a PA based holding company that provides insurance and reinsurance products (NYSE:ACE) and certain of its officers and directors by stockholders who purchased the company's common stock between October 28, 2003 and October 13, 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 Pixar (PIXR), certain of its officers and directors by stockholders who purchased the company's common stock between January 18, 2005 and June 30, 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. A class action has been filed against lifestyle community developer Avatar Holdings (Nasdaq: AVTR) and certain of its officers and directors by investors who purchased the company's 7% convertible subordinated notes due April 1, 2005 (Nasdaq: AVTRG). According to a law firm press release, a class action has been filed against Wachovia Corporation on June 9, 2008.
|
IT'S FREE
|
© 2000 - 2008 Copyright. All rights reserved nola3, llc.
