Another firm is the target of a share class lawsuit. Finkelstein & Krinsk filed suit against Lord Abbett for selling clients A shares when other share classes would have been more suitable. The suit alleges that Lord Abbett defrauded investors by disseminating prospectuses containing incomplete and misleading information.
Lord Abbett spokeswoman Kimberly Williams Weinrick declined to comment on the suit.
MFS Investment Management was recently the target of a similar suit (see The MFWire, July 31, 2008).
Company Press Release
SAN DIEGO, Sept. 18 /PRNewswire/ -- Finkelstein & Krinsk LLP has filed
a class action lawsuit against Lord, Abbett & Co. LLC and Lord Abbett
Distributor LLC ("Lord Abbett") on behalf of investors who received class A
shares of certain multi-class Lord Abbett stock mutual funds after
investing less than $50,000, and thus paid a sales charge of 5.75%. The
complaint alleges Lord Abbett violated Section 10(b) of the Securities
Exchange Act of 1934, 15 U.S.C. Sec. 78j(b), and Rule 10b-5, 17 C.F.R. Sec.
240.10b-5. The case, Zavolta v. Lord, Abbett & Co. LLC, et al., is filed in
United States District Court for the District of New Jersey and covers the
period September 11, 2003 to present ("Class Period").
The complaint alleges Lord Abbett defrauded investors by disseminating
prospectuses containing incomplete and misleading information for the
following mutual funds: Affiliated Fund; All Value Fund; Developing Growth
Fund; Growth Opportunities Fund; Large Cap Core Fund; Large Cap Growth
Fund; Large Cap Value Fund; Mid Cap Value Fund; Small Cap Blend Fund; Small
Cap Value Fund; Value Opportunities Fund; Alpha Strategy Fund; Diversified
Equity Strategy Fund (formerly Income Strategy Fund); Global Allocation
Fund; International Core Equity Fund; America's Value Fund; Balanced
Strategy Fund; Diversified Income Strategy Fund; Growth & Income Strategy
Fund (formerly World Growth & Income Strategy Fund); International Dividend
Income Fund; Developing Local Markets Fund.
The complaint asserts that Lord Abbett knowingly marketed class A
shares as the best performing alternative, when class B and/or class C
shares, otherwise identical, would have been the best investment choice.
The misleading disclosures actually omitted information from the fund
prospectuses and allowed Lord Abbett to earn greater profits at the expense
of plaintiff and class members. As a result, investors suffered
considerable damages.
If you received class A shares of a Lord Abbett mutual fund (listed
above) while investing less than $50,000 during the Class Period, thus
paying a 5.75% sales charge, you may, not later than November 17, 2008,
file a motion with the court to serve as lead plaintiff of the proposed
class. To discuss your rights regarding the appointment of lead plaintiff
or to receive additional information about this lawsuit or your purchase of
class A shares of other mutual funds charging a load, a commission, or
sales charge please contact:
Jeffrey R. Krinsk at Finkelstein & Krinsk LLP, 501 W. Broadway, Suite
1250, San Diego, CA 92101, Toll-Free: 877-493-5366, E-mail:
(fk@classactionlaw.com); or Stephen R. Basser at Barrack, Rodos & Bacine,
600 W. Broadway, Suite 900, San Diego, CA 92101, Telephone: 619-230-0800;
or Andrew Friedman at Bonnett, Fairbourn, Friedman and Balint P.C., 2901 N.
Central Avenue, Suite 1000, Phoenix, AZ 85012, Toll-Free: 800-847-9094,
ext. 5977, E-mail: (classactions@bffb.com). We welcome your inquiries.