The Primary Fund Securities Class Action
The Firm filed, on September 18, 2008, a class action suit in the U.S. District Court for the Southern District of New York on behalf of a proposed class of purchasers of shares of The Reserve Fund’s Primary Fund (Ticker: RFIXX) (the “Fund”) who purchased such shares during the period September 28, 2007 through September 16, 2008, inclusive (the “Class Period”)
The Complaint alleges that the Fund and the Fund’s underwriter, investment adviser, officers and trustees and the other related Defendants violated Sections ’11, 12(A)(2) and ’15 of the Securities Act of 1933 by making false and misleading statements and omissions concerning the lack of true diversification of the Fund’s assets, safety of principal, access to liquidity and exposure to at least face value debt of $785 million of the now defunct Lehman Brothers Holdings, Inc., that the Fund’s risk profile was not only “marginally higher” than cash, the high vulnerability of the money market fund to suddenly drop below $1 per share to $.95 per share, and the fact that the net asset value of the money market fund (“NAV”) was speculative and inflated. Thus, the Fund’s Registration Statement and Prospectus materials, for period September 28, 2007 through September 16, 2008, were materially false and misleading.
Plaintiff seeks to recover damages on his own behalf and on behalf of the Class and is represented by the law firm of Kantrowitz, Goldhamer & Graifman, P.C. The firm has significant experience successfully prosecuting complex securities fraud class actions on behalf of defrauded investors.
If you engaged in transactions of the Fund securities during the Class Period, you may, not later than November 18, 2008, which is sixty (60) days from the date of this notice, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact: Gary S. Graifman, Esq., at Kantrowitz, Goldhamer & Graifman, toll-free at (800) 711-5258 or by filling out our online contact form or by writing to:
Kantrowitz, Goldhamer & Graifman, P.C.
747 Chestnut Ridge Road,
Chestnut Ridge, NY 10977.
CONTACT: Gary S. Graifman , Esq