| Company: | Lord Abbett & Co. LLC |
| Ticker Symbol: | NASD: LAVYX, LDFVX, GILAX, GILBX, LAVPX |
| Class Period: | February 6, 1999 to November 17, 2003 |
| Court: | District, NJ |
| Date Filed: | Mar-12-04 |
| Lead Plaintiff Deadline: | May-07-04 |
| Allegations: |
A class action lawsuit was filed on March 12, 2004, in the United States District Court for the District of New Jersey, on behalf of all purchasers, redeemers and holders of shares of the Lord Abbett family of mutual funds (collectively, the "Lord Abbett Funds"), which are managed by Lord Abbett & Co. LLC, between February 6, 1999 and November 17, 2003 (the "Class Period").
The following Lord Abbett Funds are subject to this lawsuit:
Lord Abbett All Value Fund (Nasdaq: LAVYX, LDFVX, GILAX, GILBX, LAVPX)
Lord Abbett Alpha Series Fund (Nasdaq: ALFBX, ALFAX, ALFCX)
Lord Abbett America's Value Fund (Nasdaq: LAMPX, LAMYX, LAMAX, LAMCX, LAMBX)
Lord Abbett Balanced Series Fund (Nasdaq: BFLAX, LABFX, LABBX, LABPX)
Lord Abbett Developing Growth Fund (Nasdaq: LAGWX, LADBX, LADCX, LADPX, LADYX)
Lord Abbett Florida Fund (Nasdaq: LAFLX, FLLAX)
Lord Abbett Global Equity Fund (Nasdaq: LAGEX, LAGCX, LAGBX)
Lord Abbett Growth Opportunities Fund (Nasdaq: LMGAX, LMGYX, LMGBX, LMGCX, LGOPX)
Lord Abbett International Core Equity Fund (Nasdaq: LICAX, LICBX, LICCX, LICYX, LICPX)
Lord Abbett International Opportunities Fund (Nasdaq: LINBX, LINCX, LAIEX, LINYX, LINPX)
Lord Abbett Large-Cap Growth Fund (Nasdaq: LLRCX, LACGX, LALYX, LALCX, LALBX, LLCPX)
Lord Abbett Large-Cap Value Fund (Nasdaq: LRLPX,LARBX,LRLCX,LAYRX, LALAX,LLCBX,LLCCX,LALPX,LLCYX)
Lord Abbett Mid-Cap Value Fund (Nasdaq: LAVLX, LMCBX, LMCCX, LMCYX, LMCPX)
Lord Abbett Small-Cap Blend Fund (Nasdaq: LSBPX, LSBYX, LSBAX, LSBBX, LSBCX)
Lord Abbett Small-Cap Value Fund (Nasdaq: LRSYX, LSRCX, LRSCX, LRSBX, LRSPX)
Lord Abbett Bond-Debenture Fund (Nasdaq: LBNBX, LBNYX, LBNDX, LBNPX, BDLAX)
Lord Abbett California Fund (Nasdaq: LCFIX, CALAX)
Lord Abbett Connecticut Fund (Nasdaq: LACTX)
Lord Abbett Convertible Fund (Nasdaq: LACFX, LBCFX, LACCX, LCFPX, LCFYX)
Lord Abbett Core Fixed Income Fund (Nasdaq: LCRAX, LCRPX, LCRBX, LCRCX)
Lord Abbett Affiliated Fund (Nasdaq: LAFPX, LAFFX, LAFBX, LAFCX, LAFYX)
Lord Abbett Georgia Fund (Nasdaq: LAGAX)
Lord Abbett Global Income Fund (Nasdaq: LAGIX, LAIBX, GBLAX, LGIPX)
Lord Abbett Hawaii Fund (Nasdaq: LAHIX)
Lord Abbett High Yield Fund (Nasdaq: LHYAX, LAHYX, LHYBX, LHYCX, LHYPX)
Lord Abbett Insured Intermediate Fund (Nasdaq: LISAX, LISBX, LISCX, LISPX)
Lord Abbett Limited Duration USG & GSE Fund (Nasdaq: LDLAX, LALDX, LLTBX)
Lord Abbett Michigan Fund (Nasdaq: LAMIX)
Lord Abbett Minnesota Fund (Nasdaq: LAMNX)
Lord Abbett Missouri Fund (Nasdaq: LAMOX)
Lord Abbett National Tax-Free Fund (Nasdaq: LANSX, LTNSX, LANBX)
Lord Abbett New Jersey Fund (Nasdaq: LANJX)
Lord Abbett New York Fund (Nasdaq: LANYX, NYLAX)
Lord Abbett Pennsylvania Fund (Nasdaq: LAPAX)
Lord Abbett Texas Fund (Nasdaq: LATIX)
Lord Abbett Total Return Fund (Nasdaq: LTRPX, LTRAX, LTRBX, LTRCX)
Lord Abbett USG & GSE Fund (Nasdaq: LAGVX, LAUSX, LAVBX)
Lord Abbett USG & GSE Money Market Fund (Nasdaq: LGOPX)
Lord Abbett Washington Fund (Nasdaq: LAWAX)
Lord Abbett Cash Reserve Fund (Nasdaq: LACXX)
The complaint charges Lord Abbett & Co. LLC ("Lord Abbett"), its partners, directors and trustees with violations of the Investment Company Act of 1940 (the "Investment Company Act"), the Investment Advisers Act of 1940 (the "Investment Advisers Act"), and for common law breach of fiduciary duties. The Complaint charges that, throughout the Class Period, defendants issued false and misleading statements in Lord Abbett Funds' registration statements and prospectuses and, as a result, plaintiffs and the Class were damaged.
Specifically, the Complaint alleges that Lord Abbett and its partners drew upon the assets of the Lord Abbett Funds to pay brokers to aggressively push Lord Abbett Funds over other funds, and that these payments were concealed from investors by disguising them as brokerage commissions. Such brokerage commissions, though paid from fund assets, were not disclosed to investors in the Lord Abbett Funds public filings or elsewhere. Thus, Lord Abbett Funds investors were induced to purchase Lord Abbett Funds by brokers who received undisclosed payments from Lord Abbett and its partners to push Lord Abbett Funds over other mutual funds and who therefore had an undisclosed conflict of interest. These payments were distinct from normal broker commissions, and thus the advice to invest in the Lord Abbett Funds was given by brokers who, far from giving impartial advice based on the expected return to the investor, were motivated by the promise of bonuses above and beyond their normal commission into channeling their clients' money into the Lord Abbett Funds regardless of the expected return, and thus investors were also damaged by the breach of the fiduciary duty owed by Lord Abbett, its partners, directors and trustees, to protect the Lord Abbett Funds and their investors from actions by the fund advisors performed for their own interests and detrimental to the interest of the Funds and their investors.
In addition, assets of the Funds were improperly used to pay overhead and other marketing costs, costs which should have been paid by the Fund advisor and its partners as a cost of doing business, but which they illegally dipped into the Fund assets for, that is, into the pockets of holders of Lord Abbett Funds. This practice was also not disclosed to investors. In effect, Lord Abbett and its partners "skimmed" from the Lord Abbett Funds to finance their ongoing marketing campaign in a manner which violated securities laws. These practices drained profits from the Lord Abbett Funds which ought to have inured to the holders of the funds themselves, and were not disclosed to investors, such nondisclosure itself being a violation of securities laws. The Lord Abbett Funds directors and trustees, who purported to be Lord Abbett investor watchdogs, knowingly or recklessly permitted this conduct to occur.
By engaging in this conduct, Lord Abbett and its partners, and the defendant entities that control them, breached their statutorily-defined fiduciary duties under Sections 36(a) and (b) of the Investment Company Act, and Sections 206 of the Investment Advisers Act, breached their common law fiduciary duties, and knowingly aided and abetted the brokers in the breach of fiduciary duties to their clients. Lord Abbett also violated Section 34(b) of the Investment Company Act because, to further its improper campaign, it made untrue statements of material fact in fund registration statements, and material omissions, with respect to the procedure for determining the amount of fees payable to the Lord Abbett partners and with respect to the improper uses to which the fees were put. Additionally, the Lord Abbett Funds directors and trustees breached their common law fiduciary duties to the Lord Abbett Funds investors by knowingly or recklessly allowing the improper conduct alleged herein to occur and harm Lord Abbett Funds investors.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, 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.
The following Lord Abbett Funds are subject to this lawsuit:
Lord Abbett All Value Fund (Nasdaq: LAVYX, LDFVX, GILAX, GILBX, LAVPX)
Lord Abbett Alpha Series Fund (Nasdaq: ALFBX, ALFAX, ALFCX)
Lord Abbett America's Value Fund (Nasdaq: LAMPX, LAMYX, LAMAX, LAMCX, LAMBX)
Lord Abbett Balanced Series Fund (Nasdaq: BFLAX, LABFX, LABBX, LABPX)
Lord Abbett Developing Growth Fund (Nasdaq: LAGWX, LADBX, LADCX, LADPX, LADYX)
Lord Abbett Florida Fund (Nasdaq: LAFLX, FLLAX)
Lord Abbett Global Equity Fund (Nasdaq: LAGEX, LAGCX, LAGBX)
Lord Abbett Growth Opportunities Fund (Nasdaq: LMGAX, LMGYX, LMGBX, LMGCX, LGOPX)
Lord Abbett International Core Equity Fund (Nasdaq: LICAX, LICBX, LICCX, LICYX, LICPX)
Lord Abbett International Opportunities Fund (Nasdaq: LINBX, LINCX, LAIEX, LINYX, LINPX)
Lord Abbett Large-Cap Growth Fund (Nasdaq: LLRCX, LACGX, LALYX, LALCX, LALBX, LLCPX)
Lord Abbett Large-Cap Value Fund (Nasdaq: LRLPX,LARBX,LRLCX,LAYRX, LALAX,LLCBX,LLCCX,LALPX,LLCYX)
Lord Abbett Mid-Cap Value Fund (Nasdaq: LAVLX, LMCBX, LMCCX, LMCYX, LMCPX)
Lord Abbett Small-Cap Blend Fund (Nasdaq: LSBPX, LSBYX, LSBAX, LSBBX, LSBCX)
Lord Abbett Small-Cap Value Fund (Nasdaq: LRSYX, LSRCX, LRSCX, LRSBX, LRSPX)
Lord Abbett Bond-Debenture Fund (Nasdaq: LBNBX, LBNYX, LBNDX, LBNPX, BDLAX)
Lord Abbett California Fund (Nasdaq: LCFIX, CALAX)
Lord Abbett Connecticut Fund (Nasdaq: LACTX)
Lord Abbett Convertible Fund (Nasdaq: LACFX, LBCFX, LACCX, LCFPX, LCFYX)
Lord Abbett Core Fixed Income Fund (Nasdaq: LCRAX, LCRPX, LCRBX, LCRCX)
Lord Abbett Affiliated Fund (Nasdaq: LAFPX, LAFFX, LAFBX, LAFCX, LAFYX)
Lord Abbett Georgia Fund (Nasdaq: LAGAX)
Lord Abbett Global Income Fund (Nasdaq: LAGIX, LAIBX, GBLAX, LGIPX)
Lord Abbett Hawaii Fund (Nasdaq: LAHIX)
Lord Abbett High Yield Fund (Nasdaq: LHYAX, LAHYX, LHYBX, LHYCX, LHYPX)
Lord Abbett Insured Intermediate Fund (Nasdaq: LISAX, LISBX, LISCX, LISPX)
Lord Abbett Limited Duration USG & GSE Fund (Nasdaq: LDLAX, LALDX, LLTBX)
Lord Abbett Michigan Fund (Nasdaq: LAMIX)
Lord Abbett Minnesota Fund (Nasdaq: LAMNX)
Lord Abbett Missouri Fund (Nasdaq: LAMOX)
Lord Abbett National Tax-Free Fund (Nasdaq: LANSX, LTNSX, LANBX)
Lord Abbett New Jersey Fund (Nasdaq: LANJX)
Lord Abbett New York Fund (Nasdaq: LANYX, NYLAX)
Lord Abbett Pennsylvania Fund (Nasdaq: LAPAX)
Lord Abbett Texas Fund (Nasdaq: LATIX)
Lord Abbett Total Return Fund (Nasdaq: LTRPX, LTRAX, LTRBX, LTRCX)
Lord Abbett USG & GSE Fund (Nasdaq: LAGVX, LAUSX, LAVBX)
Lord Abbett USG & GSE Money Market Fund (Nasdaq: LGOPX)
Lord Abbett Washington Fund (Nasdaq: LAWAX)
Lord Abbett Cash Reserve Fund (Nasdaq: LACXX)
The complaint charges Lord Abbett & Co. LLC ("Lord Abbett"), its partners, directors and trustees with violations of the Investment Company Act of 1940 (the "Investment Company Act"), the Investment Advisers Act of 1940 (the "Investment Advisers Act"), and for common law breach of fiduciary duties. The Complaint charges that, throughout the Class Period, defendants issued false and misleading statements in Lord Abbett Funds' registration statements and prospectuses and, as a result, plaintiffs and the Class were damaged.
Specifically, the Complaint alleges that Lord Abbett and its partners drew upon the assets of the Lord Abbett Funds to pay brokers to aggressively push Lord Abbett Funds over other funds, and that these payments were concealed from investors by disguising them as brokerage commissions. Such brokerage commissions, though paid from fund assets, were not disclosed to investors in the Lord Abbett Funds public filings or elsewhere. Thus, Lord Abbett Funds investors were induced to purchase Lord Abbett Funds by brokers who received undisclosed payments from Lord Abbett and its partners to push Lord Abbett Funds over other mutual funds and who therefore had an undisclosed conflict of interest. These payments were distinct from normal broker commissions, and thus the advice to invest in the Lord Abbett Funds was given by brokers who, far from giving impartial advice based on the expected return to the investor, were motivated by the promise of bonuses above and beyond their normal commission into channeling their clients' money into the Lord Abbett Funds regardless of the expected return, and thus investors were also damaged by the breach of the fiduciary duty owed by Lord Abbett, its partners, directors and trustees, to protect the Lord Abbett Funds and their investors from actions by the fund advisors performed for their own interests and detrimental to the interest of the Funds and their investors.
In addition, assets of the Funds were improperly used to pay overhead and other marketing costs, costs which should have been paid by the Fund advisor and its partners as a cost of doing business, but which they illegally dipped into the Fund assets for, that is, into the pockets of holders of Lord Abbett Funds. This practice was also not disclosed to investors. In effect, Lord Abbett and its partners "skimmed" from the Lord Abbett Funds to finance their ongoing marketing campaign in a manner which violated securities laws. These practices drained profits from the Lord Abbett Funds which ought to have inured to the holders of the funds themselves, and were not disclosed to investors, such nondisclosure itself being a violation of securities laws. The Lord Abbett Funds directors and trustees, who purported to be Lord Abbett investor watchdogs, knowingly or recklessly permitted this conduct to occur.
By engaging in this conduct, Lord Abbett and its partners, and the defendant entities that control them, breached their statutorily-defined fiduciary duties under Sections 36(a) and (b) of the Investment Company Act, and Sections 206 of the Investment Advisers Act, breached their common law fiduciary duties, and knowingly aided and abetted the brokers in the breach of fiduciary duties to their clients. Lord Abbett also violated Section 34(b) of the Investment Company Act because, to further its improper campaign, it made untrue statements of material fact in fund registration statements, and material omissions, with respect to the procedure for determining the amount of fees payable to the Lord Abbett partners and with respect to the improper uses to which the fees were put. Additionally, the Lord Abbett Funds directors and trustees breached their common law fiduciary duties to the Lord Abbett Funds investors by knowingly or recklessly allowing the improper conduct alleged herein to occur and harm Lord Abbett Funds investors.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, 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.
