Stockholders v Deutsche Asset Management
Stockholders File Lawsuit Against Deutsche Asset Management
According to a press release dated August 25, 2009, the complaint charges DWS RREEF I and DWS RREEF II and certain of its officers and directors with violations of the Securities Exchange Act of 1934. DWS RREEF I and DWS RREEF II are closed-end, non-diversified, management investment companies.
The complaint alleges that during the Class Period, the Funds issued reports that misrepresented the Funds investments, leverage and exposure to the auction rate preferred securities (ARPS) market. Due to defendants false and misleading statements, investors purchased the common stock of the Funds during the Class Period at artificially inflated prices and were damaged thereby.
Subsequently, as a result of disclosures which caused investors to realize that distributions would cease, the Funds prices dropped. The price per share of DWS RREEF I dropped from $3.45 per share on November 14, 2008 to $2.65 on November 18, 2008, and the price per share of DWS RREEF II dropped from $1.90 per share on November 14, 2008 to $1.42 per share on November 18, 2008.
The Funds have never recovered and DWS RREEF I trades at less than $2 per share and DWS RREEF II trades at less than $0.60 per share.
If you bought Deutsche Asset Management securities and would like to obtain information about the Deutsche Asset Management lawsuit, then you are invited to call Kahn Swick & Foti, LLC toll free at (866) 467-1400 extension 100 to speak with an attorney or visit www.ksfcounsel.com.
