Wolf Popper LLP
Wolf Popper LLP Files Class Action Against the Reserve Primary Fund
NEW YORKB September 18, 2008 B Wolf Popper LLP has filed a class action lawsuit against the Reserve Primary Fund (the “Fund”) and related entities in the United States District Court for the Southern District of New York on behalf of investors in the Fund who had not redeemed their shares as of September 16, 2008. The case has been assigned Civil Action No. 08-8060.
The action is brought against the Fund, and affiliated entities, for allegedly deviating from the Fund=s fundamental investment objective “to seek as high a level of current income as is consistent with the preservation of capital and liquidity.”
The Fund allegedly deviated from its stated investment objective by sacrificing preservation of capital and liquidity in pursuit of higher yields. This strategy was exemplified by the Fund’s disastrous and unreasonable concentration of $785 million (face value) in commercial paper issued by Lehman Brothers Holdings, Inc. (“Lehman”). The entire value of the Fund’s Lehman investment was wiped out when Lehman filed for bankruptcy on September 15, 2008.
The Fund=s deviation from its stated investment objective caused its net asset value (NAV) to decline by at least 3%, falling below $1.00, to $0.97 (“breaking the buck”) on September 16, 2008.
The action was filed under the Investment Company Act. There is no due date or requirement for the filing of a lead plaintiff motion.
Investors in the Reserve Primary Fund are urged to speak with the following attorney who filed the complaint:
James A. Harrod, Esq.
Wolf Popper LLP
845 Third Avenue
New York, New York 10022
(877) 370-7703 or (212) 451-9642
irrep@wolfpopper.com or jharrod@wolfpopper.com
Attorney Advertising B Prior results do not guarantee a similar outcome
