NEW YORK, NY — (MARKET WIRE) — 09/05/2003 — A class action lawsuit was commenced in Wisconsin State Court on behalf of all purchasers, redeemers and holders of mutual fund shares of Strong GrowthFund (NASDAQ: SGROX), Strong Large-Cap Growth Fund ((NASDAQ: STRFX), Strong Growth 20 Fund ((NASDAQ: SGTWX), Strong Advisor Mid-Cap Growth ((NASDAQ: SMDCX), and Strong Dividend Income Fund ((NASDAQ:SDVIX) from October 26, 2002 through the present (the “Class Period”). Strong Capital Management, Inc. is also a defendant in the case. A copy of the complaint is available fromthe Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website at www.bernlieb.com or contact us at (800) 217-1522 or by email at [email protected].
The complaint charges that defendants violated their fiduciary duties to their customers in return for substantial fees and other income for themselves and their affiliates. The complaint alleges, among other things, that part of defendants’ scheme was “late trading” of mutual fund shares by select customers of the fund (including hedge funds). Specifically, the complaint alleges that certain of defendants’ mutual fund investors, including Canary Capital Partners, LLC and Canary Investment Management, LLC (collectively, “Canary”), improperly arranged with defendants that orders Canary placed after 4 p.m. on a given day would illegally receive that day’s price (as opposed to the next day’s price, which the order would have received had it been processed lawfully). This allowed Canary and other mutual fund investors who engaged in the same wrongful course of conduct to capitalize on post 4:00 p.m. information while those who bought their mutual fund shares lawfully could not.
The complaint further alleges that defendants’ engaged in a wrongful conduct defined as “Timing.” Timing is an investment technique involving short-term, “in and out” trading of mutual fund shares. This technique is designed to exploit inefficiencies in the way mutual fund companies price their shares. It is widely acknowledged that “Timing” inures to the detriment of long-term shareholder. Nonetheless, in return for investments that would increase fund managers’ fees, fund managers entered into undisclosed agreements to allow “Timing.”
Plaintiff seeks to recover damages on behalf of all purchasers, redeemers and holders of mutual fund shares of Strong Growth Fund, Strong Large-Cap Growth Fund, Strong Growth 20 Fund, Strong Advisor Mid-Cap Growth, and Strong Dividend Income Fund during the Class Period. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential Class member, you may contact Sandy A. Liebhard, Mel E. Lifshitz or U. Seth Ottensoser at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800) 217-1522 or (212) 779-1414 or by e-mail at [email protected]; [email protected] or [email protected].
Contact: Sandy A. Liebhard
Company: Bernstein Liebhard & Lifshitz, LLP
Phone: 800-217-1522 or 212-779-1414
Email: [email protected]
Contact: Mel E. Lifshitz
Company: Bernstein Liebhard & Lifshitz, LLP
Phone: 800-217-1522 or 212-779-1414
Email: [email protected]
Contact: U. Seth Ottensoser
Company: Bernstein Liebhard & Lifshitz, LLP
Phone: 800-217-1522 or 212-779-1414
Email: [email protected]
