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Berger & Montague, P.C. Files Class Action Suit Involving Certain Money Market Mutual Funds Offered by The Reserve FundPHILADELPHIA, Nov 06, 2008 /PRNewswire-USNewswire via COMTEX/ -- The law firm of Berger & Montague, P.C. has filed a class action in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or held the shares of the Primary Fund ("Primary Fund" or the "Fund") (Nasdaq: RFIXX) money market mutual funds offered by The Reserve Fund during the period from September 28, 2007 to September 16, 2008, inclusive (the "Class Period"), including purchasers and holders in connection with its September 28, 2007 offering (the "Offering"). The case is Wolgin v. The Reserve Fund, C.A. No. 08 CIV 9525 (S.D.N.Y.). If you wish to serve as lead plaintiff, you must move the Court no later than November 17, 2008. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Barbara A. Podell of Berger & Montague at 1-888-891-2289, or via e-mail at [email protected]. If you are a member of this class, you can view a copy of the complaint as filed online at http://www.bergermontague.com. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges The Reserve Fund, its parent and affiliates and certain of its officers and trustees with violations of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940. The Reserve Fund is a cash management vehicle for institutions, banks, brokerages, advisors and individual investors and is an open-end, management investment company. On September 16, 2008, The Reserve Fund announced with respect to the Primary Fund that the value of the debt securities issued by Lehman Brothers Holdings, Inc. (face value $785 million) and held by the Primary Fund had been valued at zero and, as a result, the net asset value of the Primary Fund was $0.97 per share. This was shocking news because this was only the second time in history that a money market fund had "broken the buck" - that is, reported a share's value was less than a dollar. According to the complaint, the true facts, which were omitted from the Prospectus and other statements made by defendants during the Class Period, were as follows: (a) the Fund was no longer adhering to the stated objectives of preserving capital, but in an effort to achieve greater yields was pursuing riskier instruments; (b) despite the fact that many observers believed Lehman would be the next Wall Street failure after Bear Stearns collapsed in March 2008, the Fund continued to hold large amounts of Lehman commercial paper; and (c) the Fund's internal controls were inadequate to prevent defendants from taking on excessive risk. Plaintiff seeks to recover damages on behalf of all purchasers or holders of the Primary Fund during the Class Period, including purchasers and holders in connection with the Offering (the "Class"). The plaintiff is represented by Berger & Montague, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Berger & Montague, founded in 1970, is a pioneer in class action litigation. The firm's approximately 60 attorneys concentrate their practice in complex litigation including securities fraud and corporate governance, antitrust, civil rights, consumer protection and environmental and mass torts, and have recovered billions of dollars for consumers and investors. If you purchased or held securities of the Primary Fund during the Class Period, including purchasers and holders in connection with the Offering, please visit our website at www.bergermontague.com to view the complaint and join the class action or if you have any questions concerning this notice or your rights with respect to this matter, please contact: Barbara A. Podell, Esquire Glen L. Abramson, Esquire Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-4604 Website: http://www.bergermontague.com E-mail: [email protected] SOURCE Berger & Montague, P.C. http://www.bergermontague.com |