Posted by Joe Seidman on October 11, 2005 at 13:38:19:
Bernstein Liebhard & Lifshitz, LLP (Bernstein Liebhard) recently filed a class action in the United States District Court for the Southern District of New York entitled Jeanne Chilton v. Smith Barney Fund Management, LLC, Civ. No. 05-7583 (J. Pauley), brought on behalf of all purchasers, redeemers and holders (the Class) of the mutual fund shares or other ownership interests of one or more of the Smith Barney Family of Funds (the Funds) from August 26, 2000 through August 26, 2005 (the Class Period). Plaintiffs allege violations of Sections 36(a) and 36(b) of the Investment Company Act of 1940, as well as pendent state law claims of civil conspiracy and unjust enrichment, against Defendants Smith Barney Fund Management, LLC (the Adviser) and Citigroup Global Markets (Global Markets). Bernstein Liebhard has extensive experience in securities class action cases, and has played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. For more information about Bernstein Liebhard & Lifshitz, LLP, please visit our website at http://www.bernlieb.com.
This case concerns an investment adviser that placed its interest in making a profit ahead of the interests of the mutual funds it serves. Investment advisers have a fiduciary duty to act in the best interests of the mutual funds they advise and their shareholders. Here, the Adviser, which serves as investment adviser to the Funds, recommended that the Funds contract with Citigroup Trust Bank, fsb (CTB), an affiliate of the Adviser, which would perform limited transfer agent services and sub-contract with the Funds existing transfer agent, First Data Corporation. The existing transfer agent would perform almost all of the same services it had performed previously, but at deeply discounted rates, permitting the affiliate of the Adviser to keep most of the discount for itself and make a high profit for performing limited work. Indeed, over the past five years, CTB has received more than $100 million in net fees for operating a small customer service call center and performing limited additional oversight and quality control functions at a total cost of approximately $11 million. This self-interested transaction permitted the Adviser and its affiliates to profit from the transfer agent function at the expense of the Funds and their shareholders.
A copy of the complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. 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 one of the attorneys assigned to this case, Joseph R. Seidman, 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 seidman@bernlieb.com.
Follow Ups:
Post a Followup
|
