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).

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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.

 

Edited by: Erin Kello


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