On Thursday, February 7, 2013, the distribution of the Net Settlement Fund in the In re Mutual Funds Investment Litigation - Alger Sub-Track commenced. Distribution checks were mailed to Authorized Claimants pursuant to the Court-approved Plan of Allocation and in accordance with the Court’s Order Authorizing Distribution of Settlement Funds in the Alger Sub-Track dated January 16, 2013. Distribution checks must be cashed within ninety days of issuance. If you have any questions regarding your distribution in this matter, please contact Rust at (866) 880-0443.
On October 31, 2003, the first in a series of securities class action complaints was filed against Fred Alger Management, Inc. and related entities alleging market-timing and late trading in the mutual funds in the Alger Fund Complex advised and/or managed by Fred Alger Management, Inc. in violation of the federal securities laws. A derivative action resulting from the same alleged market-timing and late trading practices was filed on November 24, 2003. Plaintiffs’ claims focused on an alleged improper trading scheme, whereby defendants permitted certain investors to “market time” the Alger Funds. Plaintiffs asserted, among other things, that defendants allowed select investors to take advantage of short-term inefficiencies in the pricing of the Alger Funds, at the expense of long-term investors and, ultimately, the Alger Funds themselves. The defendants have denied and continue to deny each and all of the claims and contentions alleged by Plaintiffs in the actions.
The proposed settlement of the Mutual Funds Investment Litigation Alger Sub-Track resolves the claims asserted in both the securities and derivative actions and provides for a total payment of $4,828,800, funded on behalf of five separate groups of defendants. For more information regarding the breakdown of this payment or further details regarding the settlement with a specific group of defendants, please review the Long-Form Notice. For a German translation of the Long-Form Notice, please click here. By Order dated May 19, 2010, the Honorable J. Frederick Motz granted preliminary approval to the settlement of the Mutual Funds Investment Litigation Alger Sub-Track.
If you purchased or held shares in certain mutual funds in the Alger Fund Complex advised and/or managed by Fred Alger Management, Inc. during the period from November 1, 1998 to September 3, 2003, inclusive, you may be eligible to receive a payment from the settlement. Please review the Long-Form Notice, to see if you purchased or held shares in the mutual funds at issue in the settlement of the class action. For a German translation of the Long-Form Notice, please click here. Additionally, if you currently hold shares in an Alger mutual fund, or a successor fund, certain of your rights may be affected by the settlement of the derivative claims.
Ways to obtain information about your mutual fund holdings during the class period:
· Review your historical, financial records such as hard copy account statements, electronic statements, tax returns or schedules, or any other records you may have showing your mutual fund holdings during the class period.
· If you cannot locate documentation within your personal records, and you held mutual fund shares through a brokerage house or other intermediary, contact your broker, custodian, financial advisor, etc. and request copies of your year-end financial statements during the class period.
· For Alger Fund shareholders who purchased their shares through Fred Alger & Company, Incorporated, if you do not have your year-end holdings, contact Alger at 1-800-992-3863 for assistance.