CASE SUMMARY
This case was brought as a class action alleging that Defendants made false and misleading statements and omissions in the registration statements and
prospectus issued by the YieldPlus Fund (the "Fund") about the investment profile and objectives of the Fund during the period between May 31, 2006 and
March 17, 2008. The Lead Plaintiffs allege that Defendants violated federal and state law in registering, marketing and selling the Fund as a stable
bond fund which had "minimal" risk of a fluctuating share price. Lead Plaintiffs allege that the Fund was not "stable" and "safe," because it was
comprised of mortgage-backed securities and corporate finance bonds making the Fund riskier than represented, and eventually the true risks presented
by the assets held by the Fund were revealed, resulting in losses to Fund investors. Defendants deny that they did anything wrong and that the Lead
Plaintiffs or anyone else may recover alleged damages from any Defendant.
On June 25, 2010, the Settlement Administrator mailed
Notice Packets and the Record of Fund Transactions to class members.
You do not need to do anything to be eligible for participation. However, if you do not agree with the Record of Fund Transactions and you want to submit a
Transaction Dispute form, your dispute must be postmarked on or before August 9, 2010 and submitted to the Settlement Administrator for review.
With some exceptions that are detailed in the Notice of Pendency and Proposed Settlement of Class Action, the Settlement, if approved by the Court, will provide for
a payment to Class Members, where appropriate, of the greater of their losses under the two classes that are covered by the Settlement, called the "Federal Classes":
(1) all persons or entities who acquired shares of the Fund traceable to a false and misleading registration statement for the Fund and who were damaged thereby
during the period November 15, 2006, through March 17, 2008, inclusive (the "Section 11 Class"); and
(2) all persons or entities who acquired shares of the Fund traceable to a false and misleading prospectus for the Fund and who were damaged thereby, during the period
May 31, 2006, through March 17, 2008, inclusive (the "Section 12 Class").
"Section 11" and Section 12" are sections of the Securities Act of 1933.
Defendants have agreed to pay $200,000,000 in cash. The balance of this fund after payment of Court-approved attorneys' fees and expenses and the costs of settlement
administration, including the costs of printing and mailing this Notice (the "Net Settlement Fund") will be divided among all eligible Class Members.
You are encouraged to read the detailed Notice to determine if you are eligible for a recovery in this case.
Further information is available from the
Case Documents and the
Frequently Asked Questions ("FAQs") available on this site.