FleetBoston Financial Corporation : Columbia Family of Funds Summary: Proceedings against Bank of American, the acquirer of FleetBoston, have been stayed pending settlement discussion and approval. No further actions have been taken as of December 17, 2007.
According to a press release dated August 8, 2006, Bank of America said in its filing Tuesday that it has agreed to pay $9.6 million to settle lawsuits over allegations of improper trading in Columbia mutual funds acquired in the 2004 FleetBoston Financial Corp. acquisition. The settlement requires court approval.
In June 2004, the case first filed in the U.S. District Court for the District of Massachusetts was transferred by the order from the Judicial Panel on Multidistrict Litigation to the District of Maryland and associated under case 04-md-15863.
The Complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933; Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; and Section 206 of the Investment Advisers Act of 1940. The Complaint charges that, throughout the Class Period, certain of the defendants failed to disclose that they improperly allowed certain favored investors 'timing' of the Funds' securities. Timing is excessive, arbitrage trading undertaken to turn a quick profit and which ordinary investors are told that the funds police. Timing injures ordinary mutual fund investors -- who are not allowed to engage in such practices -- and are acknowledged as improper practices by the Funds. In return for receiving extra fees from favored investors, FleetBoston, Columbia Group, Columbia Management, Columbia Wanger, and Columbia Distributor allowed and facilitated timing activities in the Funds, to the detriment of class members, who paid, dollar for dollar, for improper profits made by privileged investors. These practices were undisclosed in the prospectuses of the Funds, which falsely represented that the Funds actively police against timing and that premature redemptions will be assessed a charge.
The Funds, and the symbols for the respective Funds named in the complaint, are as follows:
Columbia Acorn Fund (LACAX, LACBX, LIACX, ACRNX) Columbia Acorn Select (LTFAX, LTFBX, LTFCX, ACTWX) Columbia Acorn USA (LAUAX, LAUBX, LAUCX, AUSAX) Columbia Asset Allocation Fund (LAAAX, LAABX, LAACX, GBAAX, GAAAX, GAATX) Columbia Balanced Fund (CBLAX, CBLBX, CBLCX, CBLDX, CBALX) Columbia Common Stock Fund (CMSAX, CMSBX, CCSCX, CMSDX, CMSTX) Columbia Disciplined Value Fund (LEVAX, LEVBX, LEVCX, GEVBX, GALEX, GEVTX) Columbia Dividend Income Fund (LBSAX, LBSBX, LBSCX, GEQBX, GEQAX, GSFTX) Columbia Growth & Income Fund (CFGAX, CFGBX, CFGDX, LGISX) Columbia Growth Fund (CGWAX, CGWBX, CGWCX, CGWDX, CGWGX, CLMBX) Columbia Growth Stock Fund (CGSAX, CGSBX, CGSCX, SRFSX) Columbia Large Cap Core Fund (LCCAX, LCCBX, LCCCX, GGRBX, SGIEX, SMGIX) Columbia Large Cap Growth Fund (LEGAX, LEGBX, LEGCX, GBEGX, GAEGX, GEGTX) Columbia Large Company Index Fund (LLIAX, LLIBX, LLICX, ILCIX) Columbia Liberty Fund (COLFX, CCFBX, CTCCX, CTCFX) Columbia Mid Cap Growth Fund (CBSAX, CBSBX, CMCCX, CBSDX, CBSGX, CBSTX, CLSPX) Columbia Mid Cap Value Fund (COLGX, COGBX, CSVCX, LSVSX) Columbia Real Estate Equity Fund (CREAX, CREBX, CRECX, CREDX, CREEX) Columbia Small Cap Fund (LSMAX, LSMBX, LSMCX, GBSMX, SSCEX, SMCEX) Columbia Small Cap Growth Fund (CMSCX) Columbia Small Cap Value Fund (CSMIX, CSSBX, CSSCX, CSCZX) Columbia Small Company Equity Fund (LSEAX, LSEBX, LSECX, GERBX, GASEX, GSETX) Columbia Small Company Index Fund (LBIAX, LBIBX, LBICX, ISCIX) Columbia Strategic Investor Fund (CSVAX, CSVBX, CSRCX, CSVDX, CSVFX) Columbia Tax-Managed Aggressive Growth Fund (LTMAX, LTAGX, LTACX, LTAZX) Columbia Tax-Managed Growth Fund (STMAX, CTMBX, CTMCX, LMGZX) Columbia Tax-Managed Growth Fund II (LTGAX, LTIIX, LTGCX, LTGZX) Columbia Tax-Managed Value Fund (SRVAX, CTMVX, LTVCX, LTMZX) Columbia Technology Fund (CTCAX, CTCBX, CTHCX, CTCDX, CMTFX) Columbia Thermostat Fund (CTFAX, CTFBX, CTFDX, COTZX) Columbia Utilities Fund (CUTLX, CUTBX, CUTFX, LUFZX) Columbia Young Investor Fund (LYIAX, LYIBX, LYICX, SRYIX) Columbia Acorn International Fund (LAIAX, LIABX, LAICX, ACINX) Columbia Acorn International Select Fund (LAFAX, LFFBX, LFFCX, ACFFX) Columbia Europe Fund (NEUAX, LNEBX, LNECX, LNEZX) Columbia European Thematic Equity Fund (LSREX) Columbia Global Equity Fund (CGUAX, CGUBX, CGUCX) Columbia Global Thematic Equity Fund LSRGX Columbia International Equity Fund (LIEAX, LIEBX, LIECX, GBIEX, GAIEX, GIETX) Columbia International Stock Fund (CISAX, CISBX, CSKCX, CISDX, CMISX) Columbia Newport Asia Pacific Fund (NWAPX, LNABX, LNACX, LAPSX) Columbia Newport Japan Opportunities Fund (NJOAX, NJOBX, NJOCX, LNJZX) Columbia Newport Greater China Fund (NGCAX, NGCBX, NGCCX, LNGZX) Columbia Newport Tiger Fund (CNTAX, CNTBX, CNTDX, CNTTX, CNTZX) Columbia Contrarian Income Fund (CHINX, LCIBX, LCICX, LCIZX) Columbia Corporate Bond Fund (LBCAX, LBCBX, LBCCX, GCBTX) Columbia Daily Income Company Fund CDIXX Columbia Federal Securities Fund (CFSAX, CFSOX, CFSCX, LFSZX) Columbia Fixed Income Securities Fund (CFIAX, CFIBX, CISCX, CFIDX, CFISX) Columbia Floating Rate Advantage Fund (XSFRX, XSFBX, XLACX, XLAZX) Columbia Floating Rate Fund (XLFAX, XLSBX, XLFCX, XLFZX) Columbia High Yield Fund (CHGAX, CHGBX, CHDCX, CHGDX, CMHYX) Columbia High Yield Opportunity Fund (COLHX, COHBX, CHYCX, LHYZX) Columbia Income Fund (LIIAX, CIOBX, CIOCX, SRINX) Columbia Intermediate Bond Fund (LIBAX, LIBBX, LIBCX, SRBFX) Columbia Intermediate Government Income Fund (LIGAX, LIGBX, LIGCX, GGIBX, GALBX, GIBTX) Columbia Money Market Fund (CMMXX, CMBXX, CMCXX, LMZXX) Columbia Quality Plus Bond Fund (LQPAX, LQPBX, LQPCX, GBHQX, GAHQX, GHQTX) Columbia Short Term Bond Fund (CTBAX, CTBBX, CSHCX, CTBDX, CTBGX, CTBTX, CUGGX) Columbia Strategic Income Fund (COSIX, CLSBX, CLSCX, LSIZX) Columbia US Treasury Index Fund (LUTAX, LUTBX, LUTCX, IUTIX) Columbia California Tax-Exempt Fund (CLMPX, CCABX, CCAOX) Columbia Connecticut Intermediate Municipal Bond (LCTAX, LCTBX, LCTCX, GCBBX, GCBAX, SCTEX) Columbia Connecticut Tax-Exempt Fund (COCTX, CCTBX, CCTCX) Columbia Florida Intermediate Municipal Bond Fund (LFIAX, LFIBX, LFICX, SFTEX) Columbia High Yield Municipal Fund (LHIAX, CHMBX, CHMCX, SRHMX) Columbia Intermediate Tax-Exempt Bond Fund (LITAX, LITBX, LITCX, GIMBX, GIMAX, SETMX) Columbia Managed Municipals Fund (LMMAX, LMMBX, LMMCX, SRMMX) Columbia Massachusetts Intermediate Municipal Bond Fund (LMIAX, LMIBX, LMICX, GMBBX, GMBAX, SEMAX) Columbia Massachusetts Tax-Exempt Fund (COMAX, CMABX, COMCX) Columbia Municipal Money Market Fund (CXMXX, CMNXX, CMXXX, CMZXX) Columbia National Municipal Bond Fund (CNLAX, CNLBX, CNBCX, CNLDX, CLNMX) Columbia New Jersey Intermediate Municipal Bond Fund (LNIAX, LNIBX, LNICX, GNJBX, GNJAX, GNJTX) Columbia New York Intermediate Municipal Bond Fund (LNYAX, LNYBX, LNYCX, GBNYX, GANYX, GNYTX) Columbia New York Tax-Exempt Fund (COLNX, CNYBX, CNYCX) Columbia Oregon Municipal Bond Fund (COEAX, COEBX, CORCX, COEDX, CMBFX) Columbia Pennsylvania Intermediate Municipal Bond Fund (LPIAX, LPIBX, LPICX, GTPAX) Columbia Rhode Island Intermediate Municipal Bond Fund (LRIAX, LRIBX, LRICX, GRBBX, GRBAX, GRITX) Columbia Tax-Exempt Fund (COLTX, CTEBX, COLCX) Columbia Tax-Exempt Insured Fund (CEXIX, CEIBX, CEINX)
SIC Code: 6021
Industry: Money Center Banks
WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.
Go to Search page | Go to Case Index page | Back to Top