| Company: | Janus High-Yield Fund and Janus Mercury Fund |
| Ticker Symbol: | NASD: JAHYX and NASD: JAMRX |
| Class Period: | September 5, 2000 through September 2, 2003 |
| Court: | |
| Date Filed: | Sep-05-03 |
| Lead Plaintiff Deadline: | Oct-27-03 |
| Allegations: |
The Complaint is brought on behalf of all persons who acquired mutual fund shares of Janus High-Yield Fund (Nasdaq:JAHYX) and Janus Mercury Fund (Nasdaq:JAMRX) from September 5, 2000 through September 2, 2003 (the "Class Period"), against Janus Capital Group Inc. ("Janus Capital Group"), and its subsidiary, Janus Capital Management LLC ("Janus Capital"), pursuant to the prospectus therefor. The Complaint charges violations of Section 11 of the Securities Act of 1933 for false and misleading statements and omissions in the prospectuses, and common law breach of fiduciary duty.
The Complaint alleges that during the Class Period, the above-named mutual fund companies engaged in illegal and/or improper trading practices, in concert with certain institutional traders, which caused financial injury to the shareholders of the subject mutual funds, in return for substantial fees and other income for themselves and their affiliates. The complaint alleges that the schemes at Janus, Bank of America, Bank One, and Strong took two primary forms. First is the "late trading" of mutual fund shares by select customers of the fund (including hedge funds). Specifically, the complaint alleges that certain mutual fund investors of the above named fund companies, including Canary Capital Partners, LLC and Canary Investment Management, LLC (collectively, "Canary"), improperly arranged with defendants that orders placed after 4 p.m. on a given day would illegally receive that day's price (as opposed to the next day's price, which the order would have received had it been processed lawfully). This allowed Canary and other mutual fund investors who engaged in the same wrongful course of conduct to capitalize on post 4:00 p.m. information, while those who bought their mutual fund shares lawfully could not.
The complaint further alleges that defendants engaged in wrongful conduct known as "timing." Timing is an investment technique involving short-term, "in and out" trading of mutual fund shares, designed to exploit inefficiencies in the way mutual fund companies price their shares. It is widely acknowledged that "timing" inures to the detriment of long-term shareholders. Nonetheless, in return for investments from certain hedge funds and other traders that would increase fund managers' fees, fund managers entered into undisclosed agreements to allow them to "time" their funds. Funds affected include at least the following: Janus Mercury Fund and the Janus High-Yield Fund; Bank of America's "Nations Funds"; Bank One's "One Group" funds (the two international funds, the Small Cap Growth Fund, and two mid cap funds); and the Strong Growth 20 Fund, Strong Growth Fund, Advisor Mid Cap Growth Fund, Strong Large Cap Growth Fund, and Strong Dividend Income Fund.
If you acquired the securities of the defendants during the Class Period you may, no later than October 27, 2003, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
