Stull, Stull & Brody Announces Class Action against Security Brokerage, Inc. On Behalf of All Who Purchased the AllianceBernstein Family of Mutual Funds and/or Massachusetts Financial Services' Family of Mutual Funds.Business Editors/Legal Writers NEW YORK--(BUSINESS WIRE)--Jan. 27, 2004 Notice is hereby given that a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was filed on January 27, 2004, in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , on behalf of a class (the "Class") consisting of all who purchased or otherwise acquired shares or other ownership units of Alliance Capital Management's (NYSE NYSE See: New York Stock Exchange :AC) AllianceBernstein Family of Mutual Funds and/or Massachusetts Financial Services' Family of Mutual Funds, which is a subsidiary of Sun Life Financial, Inc. (NYSE:SLF SLF Super Low Frequency (30-300 Hz; 10,000-1,000 km) SLF Self SLF Statens Landbruksforvaltning (Norwegian Agricultural Authority) SLF Sveriges Läkarförbund SLF Saalfeld ) between January 1, 2001 and September 30, 2003, inclusive (the "Class Period"). The Complaint charges that, throughout the Class Period, defendants Security Brokerage, Inc. ("Security Brokerage") and Daniel G. Calugar ("Calugar") violated vi·o·late tr.v. vi·o·lat·ed, vi·o·lat·ing, vi·o·lates 1. To break or disregard (a law or promise, for example). 2. To assault (a person) sexually. 3. Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. thereunder. More specifically, the complaint alleges that from at least 2001 to September 2003, Calugar, trading through Security Brokerage, engaged in a scheme involving market timing of various mutual funds using investments totaling between $400-$500 million. Market timing refers to the practice of short term buying and selling of mutual fund shares in order to exploit inefficiencies in mutual fund pricing. Most of Calugar's market timing trades were through two mutual fund families: Alliance Capital Management, LP ("Alliance") and Massachusetts Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. ("MFS MFS Medicare fee schedule ") (collectively referred to as the "Mutual Funds"). The Mutual Funds, and the symbols for the respective Funds named below, are as follows: MFS Funds: MFS Capital Opportunities Fund (Nasdaq: MCOFX, MCOBX, MCOCX, MFCRX, MCOTX, EACOX, EBCOX, ECCOX) MFS Core Growth Fund (Nasdaq: MFCAX, MFCBX, MFCCX, MCFRX, MCRRX), MFS Emerging Growth Fund (Nasdaq: MEGRX, MEGBX, MFECX, MFERX, EAGRX, EBEGX, ECEGX) MFS Growth Opportunities Fund (Nasdaq: MGOFX, MGOBX) MFS Large Cap Growth Fund (Nasdaq: MCGAX, MCGBX) MFS Managed Sectors Fund (Nasdaq: MMNSX, MSEBX, MMNCX) MFS Mid Cap Growth Fund (Nasdaq: OTCAX, OTCBX, OTCCX, MMCRX, MCPRX, EAMCX, EBCGX, EGCRX) MFS New Discovery Fund (Nasdaq: MNDAX, MNDBX, MNDCX, MFNRX, MNDRX, EANDX, EBNDX, ECNDX) MFS New Endeavor Fund (Nasdaq: MECAX, MECBX, MECCX, MNERX, MENRX) MFS Research Fund (Nasdaq: MFRFX, MFRBX, MFRCX, MFRRX, MSRRX, EARFX, EBRFX, ECRFX) MFS Strategic Growth Fund (Nasdaq: MFSGX, MSBGX, MFGCX, MSGRX, MSTRX, EASGX, EBSGX, ECSGX) MFS Technology Fund (Nasdaq: MTCAX, MTCBX, MTCCX, MTQRX, MTERX) Massachusetts Investors Growth Stock Fund (Nasdaq: MIGFX, MIGBX, MIGDX, MIGRX, MIRGX, EISTX, EMIVX, EMICX) MFS Mid Cap Value Fund (Nasdaq: MVCAX, MCBVX, MVCCX, MMVRX, MCVRX, EACVX, EBCVX, ECCVX) MFS Research Growth and Income Fund (Nasdaq: MRGAX, MRGBX, MRGCX, MGIRX, MRERX) MFS Strategic Value Fund (Nasdaq: MSVTX, MSVCX, MQSVX, MSVRX, MVSRX, EASVX, EBSVX, ECSVX) MFS Total Return Fund (Nasdaq: MSFRX, MTRBX, MTRCX, MFTRX, MTRRX, EATRX, EBTRX, ECTRX) MFS Union Standard Equity Fund (Nasdaq: MUEAX, MUSBX, MUECX) MFS Utilities Fund (Nasdaq: MMUFX, MMUBX, MMUCX, MMURX, MURRX) MFS Value Fund (Nasdaq: MEIAX, MFEBX, MEICX, MFVRX, MVRRX, EAVLX, EBVLX, ECVLX) Massachusetts Investors Trust (Nasdaq: MITTX, MITBX, MITCX, MITRX, MIRTX, EAMTX, EBMTX, ECITX) MFS Aggressive Growth Allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as Fund (Nasdaq: MAAGX, MBAGX, MCAGX, MAARX, MAWAX, EAGTX, EBAAX, ECAAX) MFS Conservative Allocation Fund (Nasdaq: MACFX, MACBX, MACVX, MACRX, MCARX, ECLAX, EBCAX, ECACX) MFS Growth Allocation Fund (Nasdaq: MAGWX, MBGWX, MGCWX, MGARX, MGALX, EAGWX, EBGWX, ECGWX) MFS Moderate Allocation Fund (Nasdaq: MAMAX, MMABX, MMCAX, MAMRX, MARRX, EAMDX, EBMDX, ECMAX) MFS Bond Fund (Nasdaq: MFBFX, MFBBX, MFBCX, MFBRX, MBRRX, EABDX, EBBDX, ECBDX) MFS Emerging Markets Debt Fund (Nasdaq: MEDAX MEDAX Message Data Exchange Terminal , MEDBX, MEDCX) MFS Government Limited Maturity Fund (Nasdaq: MGLFX, MGLBX, MGLCX) MFS Government Mortgage Fund (Nasdaq: MGMT MGMT Management MGMT Methyl Guanine Methyl Transferase MGMT Make Good a Magnetic Track of ___ Degrees , MGTBX) MFS Government Securities Fund (Nasdaq: MFGSX, MFGBX, MGFDX, MGSRX, MGVSX, EAGSX, EBGSX, ECGXX) MFS High Income Fund (Nasdaq: MHITX, MHIBX, MHICX, EAHIX, EMHBX, EMHCX, MHIIX, MHIRX) MFS High Yield Opportunities Fund (Nasdaq: MHOAX, MHOB MHOB Mind Her Own Business MHOB Mind His Own Business MHOB Mind Her Own Beeswax MHOB Mind His Own Beeswax , MHOCX, MHOIX) MFS Intermediate Investment Grade Bond Fund (Nasdaq: MGBFX, MGBVX, MGBCX, MGBEX, MIBRX) MFS Limited MFS Limited is an Australian diversified investment company in the funds management and financial services sectors. History
MFS Research Bond Fund (Nasdaq: MRBFX, MRBBX, MRBCX, EARBX, EBRBX, ECRBX, MRBIX, MRBRX) MFS Strategic Income Fund (Nasdaq: MFIOX, MIOBX, MIOCX, MFIIX) MFS Alabama Municipal Bond Fund Municipal Bond Fund A mutual fund that invests in municipal bonds, operating either as an investment trust or as an open-end fund. Notes: Because the bonds are local government issues, they usually help to maximize tax-exempt income. (Nasdaq: MFALX, MBABX) MFS Arkansas Municipal Bond Fund (Nasdaq: MFARX, MBARX) MFS California Municipal Bond Fund (Nasdaq: MCFTX, MBCAX) MFS Florida Municipal Bond Fund (Nasdaq: MFFLX, MBFLX) MFS Georgia Municipal Bond Fund (Nasdaq: MMGAX, MBGAX) MFS Maryland Municipal Bond Fund (Nasdaq: MFSMX, MBMDX) MFS Massachusetts Municipal Bond Fund (Nasdaq: MFSSX, MBMAX) MFS Mississippi Municipal Bond Fund (Nasdaq: MISSX, MBMSX) MFS Municipal Bond Fund (Nasdaq: MMBFX, MMBBX) MFS Municipal Limited Maturity Fund (Nasdaq: MTLFX, MTLBX, MTLCX) MFS New York Municipal Bond Fund (Nasdaq: MSNYX, MBNYX, MCNYX) MFS North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. Municipal Bond Fund (Nasdaq: MSNCX, MBNCX, MCNCX) MFS Pennsylvania Municipal Bond Fund (Nasdaq: MFPAX, MBPAX) MFS South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. Municipal Bond Fund (Nasdaq: MFSCX, MBSCX) MFS Tennessee Municipal Bond Fund (Nasdaq: MSTNX, MBTNX) MFS Virginia Municipal Bond Fund (Nasdaq: MSVAX, MBVAX, MVACX) MFS West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. Municipal Bond Fund (Nasdaq: MFWVX, MBWVX) MFS Emerging Markets Equity Fund (Nasdaq: MEMAX, MEMBX, MEMCX, MEMIX) MFS Global Equity Fund (Nasdaq: MWEFX, MWEBX, MWECX, MWEIX, MGERX) MFS Global Growth Fund (Nasdaq: MWOFX, MWOBX, MWOCX, MWOIX, MGLRX) MFS Global Total Return Fund (Nasdaq: MFWTX, MFWBX, MFWCX, MFWIX, MGRRX) MFS International Growth Fund (Nasdaq: MGRAX, MGRBX, MGRCX, MQGIX) MFS International New Discovery Fund (Nasdaq: MIDAX, MIDBX, MIDCX, EAIDX, EBIDX, ECIDX, MWNIX, MINRX) MFS International Value Fund (Nasdaq: MGIAX, MGIBX, MGICX, MINIX) MFS Research International Fund (Nasdaq: MRSAX, MRIBX, MRICX, EARSX, EBRIX, ECRIX, MRSIX, MRIRX) AllianceBernstein Funds: U.S. Stock Funds AllianceBernstein Growth & Income Fund (Sym: CABDX, CBBDX, CBBCX) AllianceBernstein Health Care Fund (Sym: AHLAX, AHLBX, AHLCX) AllianceBernstein Disciplined Value Fund (Sym: ADGAX, ADGBX, ADGCX) AllianceBernstein Mid-Cap Growth (Sym: CHCAX, CHCBX, CHCCX) AllianceBernstein Real Estate Investment Fund (Sym: AREAX, AREBX, ARECX) AllianceBernstein Growth Fund (Sym: AGRFX, AGBBX, AGRCX) AllianceBernstein Select Investor Series Biotechnology Portfolio (Sym: ASBAX, AIBBX, ASBCX) AllianceBernstein Small CapValue Fund (Sym: ABASX, ABBSC, ABCSX) AllianceBernstein Premier Growth Fund (Sym: APGAX, APGBX, APGCX) AllianceBernstein Select Investor Series Technology Portfolio (Sym: AITAX, AITBX, AITCX) AllianceBernstein Value Fund (Sym: ABVAX, ABVBX, ABVCX) AllianceBernstein Quasar Fund (Sym: QUASX, QUABX, QUACX) AllianceBernstein Technology Fund (Sym: ALTFX, ATEBX, ATECX) AllianceBernstein Select Investor Series Premier Portfolio (Sym: ASPAX, ASPBX, ASPCX) AllianceBernstein Utility Income Fund (Sym: AUIAX, AUIBX, AUICX) Value Funds AllianceBernstein Balanced Shares (Sym: CABNX, CABBX, CBACX) AllianceBernstein Disciplined Value Fund (Sym: ADGAX, ADGBX, ADGCX) AllianceBernstein Global Value Fund (Sym: ABAGX, ABBGX, ABCGX) AllianceBernstein International Value Fund (Sym: ABIAX, ABIBX, ABICX) AllianceBernstein Real Estate Investment Fund (Sym: AREAX, AREBX, ARECX) AllianceBernstein Small Cap Value Fund (Sym: ABASX, ABBSX, ABCSX) AllianceBernstein Utility Income Fund (Sym: AUIAX, AUIBX, AUICX) AllianceBernstein Value Fund (Sym: ABVAX, ABVBX, AVBCX Blended Style Series U.S. Large Cap Portfolio (Sym: ABBAX, ABBAX, ABBCX) Global & International Stock Funds AllianceBernstein All-Asia Investment Fund (Sym: AALAX, AAABX, AAACX) AllianceBernstein Global Value Fund (Sym: ABAGX, ABBGX, ABCGX) AllianceBernstein Greater China `97 Fund (Sym: GCHAX, GCHBX, GCHCX) AllianceBernstein International Premier Growth Fund (Sym: AIPAX, AIPBX, AIPCX) AllianceBernstein International Value Fund (Sym: ABIAX, ABIBX, ABICX) AllianceBernstein Global Small Cap Fund (Sym: GSCAX, AGCBX, GSCCX) AllianceBernstein New Europe New Europe is a rhetorical term used by conservative political analysts in the United States to describe European post-Communist era countries. "New European" countries were originally distinguished by their governments' support of the 2003 war in Iraq, as opposed to an "Old Fund (Sym: ANEAX, ANEBX, ANECX) AllianceBernstein Worldwide Privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned Fund (Sym: AWPAX, AWPBX, AWPCX) Select Investor Series AllianceBernstein Select Investor Series Biotechnology Portfolio (Sym: ASBAX, AIBBX, ASBCX) AllianceBernstein Select Investor Series Premier Portfolio (Sym: ASPAX, ASPBX, ASPCX) AllianceBernstein Select Investor Series Technology Portfolio (Sym: AITAX, AITBX, AITCX) Taxable Bond Taxable Bond A debt security whose return to the investor is subject to taxes at the local, state or federal level, or some combination thereof. Notes: The majority of bonds issued are taxable bonds. Funds AllianceBernstein Americas Government Income Trust (Sym: ANAGX, ANABX, ANACX) AllianceBernstein Bond Fund Corporate Bond Portfolio (Sym: CBFAX, CBFBX, CBFCX) AllianceBernstein Bond Fund Quality Bond Portfolio (Sym: ABQUX, ABQBX, ABQCX) AllianceBernstein Bond Fund U.S. Government Portfolio (Sym: ABUSX, ABUBX, ABUCX) AllianceBernstein Emerging Market Debt Fund (Sym: AGDAX, AGDBX, AGDCX) AllianceBernstein Global Strategic Income Trust (Sym: AGSAX, AGSBX, AGCCX) AllianceBernstein High Yield Fund (Sym: AHYAX, AHHBX, AHHCX) AllianceBernstein Multi-Market Strategy Trust (Sym: AMMSX, AMMBX, AMMCX) AllianceBernstein Short Duration (Sym: ADPAX, ADPBX, ADPCX) Tax-Exempt Bond Tax-exempt bond A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax. tax-exempt bond See municipal bond. Funds AllianceBernstein Intermediate California Muni Portfolio (Sym: AICBX, ACLBX, ACMCX) AllianceBernstein Intermediate Diversified diversified (di·verˑ·s Muni Portfolio (Sym: AIDAX, AIDBX, AIMCX) AllianceBernstein Intermediate New York Muni Portfolio (Sym: ANIAX, ANYBX, ANMCX) AllianceBernstein Muni Income Fund National Portfolio (Sym: ALTHX, ALTBX, ALNCX) AllianceBernstein Muni Income Fund Arizona Portfolio (Sym: AAZAX, AAZBX, AAZCX) AllianceBernstein Muni Income Fund California Portfolio (Sym: ALCAX, ALCBX, ACACX) AllianceBernstein Muni Income Fund Insured California Portfolio (Sym: BUICX, BUIBX, BUCCX) AllianceBernstein Muni Income Fund Insured National Portfolio (Sym: CABTX, CBBBX, CACCX) AllianceBernstein Muni Income Fund Florida Portfolio (Sym: AFLAX, AFLBX, AFLCX) AllianceBernstein Muni Income Fund Massachusetts Portfolio (Sym: AMAAX, AMABX) AllianceBernstein Muni Income Fund Michigan Portfolio (Sym: AMIAX, AMIBX, AMICX) AllianceBernstein Muni Income Fund Minnesota Portfolio (Sym: AMNAX, AMNBX, AMNCX) AllianceBernstein Muni Income Fund New Jersey Portfolio (Sym: ANJAX, ANJBX, ANJCX) AllianceBernstein Muni Income Fund New York Portfolio (Sym: ALNYX, ALNBX, ANYCX) AllianceBernstein Muni Income Fund Ohio Portfolio (Sym: AOHAX, AOHBX, AOHCX) AllianceBernstein Muni Income Fund Pennsylvania Portfolio (Sym: APAAX, APABX, APACX) AllianceBernstein Muni Income Fund Virginia Portfolio (Sym: AVAAX, AVABX, AVACX) Investors in the State of Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. 529 Plan, known as the CollegeBoundfund(*), may have invested in one or more of the funds listed below: AllianceBernstein Growth & Income Fund AllianceBernstein Mid-Cap Growth Fund AllianceBernstein Premier Growth Fund AllianceBernstein Quasar Fund AllianceBernstein Technology Fund AllianceBernstein Quality Bond Portfolio AllianceBernstein International Value Fund AllianceBernstein Small Cap Value Fund AllianceBernstein Value Fund Calugar also engaged in late trading Late trading Late trading of mutual fund shares occurs when investors placing trades after 4 PM receive the 4 PM price. These late traders can use the information revealed after 4 PM to guide their trades: buying funds when their current value is greater than their 4 PM value and of MFS and Alliance funds. Late trading refers to the practice of placing orders to buy or sell mutual fund shares after close of market at 4:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. , but at the mutual fund's Net Asset Value ("NAV See navigation system and navigation bar. "), or price, determined at the market close. Late trading enables the trader to profit from market events that occur after 4:00 p.m. EST but that are not reflected in that day 's price. Because of Security Brokerage's status as a broker-dealer, it was permitted to submit trades received from its clients before 4:00 p.m. EST to the National Securities Clearing Corporation ("NSCC See National Securities Clearing Corporation. NSCC See National Securities Clearing Corporation (NSCC). ") after 4:00 p.m. EST. Calugar and Security Brokerage thus participated in a scheme with Alliance and MFS to engage in market timing that most other fund investors were not permitted to do. The Mutual Funds as well as Calugar profited at the expense of such investors. Calugar and Security Brokerage made trading profits Trading profit The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates. trading profit of $175 million from their market timing and late trading at Alliance and MFS. The Mutual Funds profited by way of increased advisory and other fees. On December 22, 2003, the SEC filed civil fraud charges against Security Brokerage, and its president and majority owner, Calugar, for their participation in a scheme to defraud To make a Misrepresentation of an existing material fact, knowing it to be false or making it recklessly without regard to whether it is true or false, intending for someone to rely on the misrepresentation and under circumstances in which such person does rely on it to his or mutual fund shareholders through improper
Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull stull n. 1. A supporting timber or other prop in a mine. 2. A platform braced against the sides of a working area in a mine. , Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. If you purchased shares of mutual funds managed by Security Brokerage, Inc. between January 1, 2001 and September 30, 2003, you may, no later than March 5, 2004, request the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You may also visit our website at www.ssbny.com. |
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