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Case Status:    SETTLED
On or around 12/04/2000 (Settlement hearing date)

Filing Date: June 17, 1999

According to the docket, on September 6, 2000, a Stipulation of Settlement was filed and on December 7, 2000, the Court entered the Order by Judge Aleta A. Trauger approving the Stipulation. The request for attorney fees of $240,000 and expenses in the amount of $16,451.10 paid from the $800,000 settlement award was approved. On April 9, 2001, the Court further entered the Order distributing the available settlement fund, minus attorney’s fees and expenses, to the class members. Plaintiff counsel was also awarded an additional reimbursement in the amount of $2,267 and the case was terminated.

On September 17, 1999, the Court entered the Order by Judge Aleta A. Trauger denying in part and granting in part defendants' motion to dismiss. Counts 1, 2 and 4 were dismissed with prejudiced and Counts 3, 5 and 6 were denied.

The class action complaint alleges that ESC Strategic Funds, Inc. and SunTrust Equitable Securities Corporation (collectively "ESC") violated federal and state securities laws and the common law by making false and misleading statements and omissions concerning the nature and possible duration of the ESC Strategic Value Fund. According to the complaint, ESC marketed and sold the Value Fund by targeting investors seeking long-term capital appreciation from purchasing "value" securities. The complaint alleges that notwithstanding the representations to investors that the Value Fund was for long-term investors and not appropriate for investors who might likely sell in the event of a short-term decline, ESC liquidated the fund after less than two years. According to the complaint, ESC failed to return to investors the fees paid in the form of front-end sales charges, and failed to compensate investors for the losses sustained by the fund.

COMPANY INFORMATION:

Sector:
Industry:
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: Open-end Fund
Market Status: Open-end Fund

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: M.D. Tennessee
DOCKET #: 99-CV-530
JUDGE: Hon. Aleta A. Trauger
DATE FILED: 06/17/1999
CLASS PERIOD START: 05/07/1997
CLASS PERIOD END: 03/01/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Falls & Veach, P.L.C.
    3422 Woodmont Boulevard, Falls & Veach, P.L.C., TN 37215
    615.242.1800 ·
No Document Title Filing Date
COURT: M.D. Tennessee
DOCKET #: 99-CV-530
JUDGE: Hon. Aleta A. Trauger
DATE FILED: 05/09/2000
CLASS PERIOD START: 05/07/1997
CLASS PERIOD END: 03/01/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Falls & Veach, P.L.C.
    3422 Woodmont Boulevard, Falls & Veach, P.L.C., TN 37215
    615.242.1800 ·
No Document Title Filing Date