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Case Status:    SETTLED
On or around 07/28/2005 (Date of order of final judgment)

Filing Date: December 17, 2001

According to the latest docket, defendant Ernst & Young LLP was not part of the settlement. After the Second Amended Consolidated Complaint was filed on December 13, 2004, Ernst & Young was the only defendant to respond to the complaint by filing a motion to dismiss the Second Amended Consolidated Complaint on January 21, 2005. After the settlement was finally approved with the other defendants on June 27, 2005, U.S. District Judge Jeffrey S. White signed the Order granting remaining defendant Ernst & Young's Motion to Dismiss the Second Amended Complaint. The Order was entered on July 25, 2005.

As summarized by the Company’s FORM N-CSR dated June 30, 2005, the lawsuits were consolidated into a single action and a consolidated amended complaint was filed in July 2003. In September 2003, the defendants filed a motion to dismiss the consolidated amended complaint, which motion was granted by the Court in July 2004 with leave for plaintiffs to file an amended complaint. After the Court's order and before the plaintiffs filed an amended complaint, in or about September 2004, the Company, the Adviser and certain other defendants, without admitting any liability, entered into a settlement with the alleged class whereby the Funds and the Adviser are to make certain corporate governance changes and the Adviser is to pay the plaintiff's attorneys certain fees and costs of class notice in exchange for dismissal of the class action lawsuit and complete release of liability. After the settlement was reached, the plaintiffs filed a further amended complaint against all defendants. All parties involved in the settlement agreed not to respond to the further amended complaint until after the Court considered the settlement. On June 27, 2005, the Court issued an Order approving the settlement and entered Final Judgment dismissing the case. On the same day the Court also granted the plaintiffs' motion for attorneys' fees in the amount of $340,000.

In early June 2002, a similar, purported class action filed in the U.S. District Court for the District of Delaware was transferred to the Eastern District of Wisconsin. On July 1, 2002, the Court entered the Order by U.S. District Judge Charles N. Clevert consolidating the nine actions under Case No. 01-CV-1264. Further, the judge granted the defendants’ motion to transfer venue. The actions were transferred to the U.S. District Court for the Northern District of California.

The original complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. The complaint is seeking to recover damages caused by defendants' violations of federal securities laws and pursue remedies under the Securities Exchange Act of 1934.

The complaint alleges that Van Wagoner Emerging Growth Fund issued
false and misleading statements to the public about Ernst & Young, LLP
failing to follow Generally Accepted Accounting Practices and Generally
Accepted Auditing Standards by specifically approving the changes in net
assets utilized by Van Wagoner between the end of 1999 and the end of
2000. These statements were materially false and misleading because (1)
the NAV of the Fund was materially overstated as the Fund had overvalued
a material portion of its holdings of certain private placement
investments; (2) the Fund's performance was materially overstated as
those figures were based on the Fund's NAV, which figures were
materially overstated because the Fund had materially overstated NAV;
and (3) the risk of investing in the Fund was materially understated as
the Fund had failed to disclose the true risk attendant to its portfolio
securities and specifically the private placement investments.
Accordingly, defendants' statements about the risks associated with
investing in the Fund were not meaningful because they failed to advise
investors that the Fund was materially overstating its NAV.

The complaint further alleges that on June 30, 2001, defendants' gross overvaluation of the private placement investments was disclosed when defendants revalued nine such private placement investments originally valued at $28.6 million on December 31, 2000 to a total of $9.00 and marked down an additional two holdings by precisely 50% or 75%. During the class period, the Fund's
value decreased by approximately 75%.

COMPANY INFORMATION:

Sector: Financial
Industry: Other (Mutual Fund)
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: N.D. California
DOCKET #: 01-CV-01264
JUDGE: Hon. Charles N. Clevert
DATE FILED: 12/17/2001
CLASS PERIOD START: 04/28/2000
CLASS PERIOD END: 06/30/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL)
    One Boca Place. 2255 Glades Road, Suite 421A, Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL), FL 33431
    561.750.3000 561.750.3364 ·
  2. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  3. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  4. Rosenthal, Monhait, Gross & Goddess, P.A.
    Suite 1401, Mellon Bank Center, PO Box 1070, Rosenthal, Monhait, Gross & Goddess, P.A., DE 19899-0170
    302.656.4433 (302) 658-7567 ·
  5. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  6. Wites & Kapetan, P.A.
    1761 West Hillsboro Boulevard - Suite 403, Wites & Kapetan, P.A., FL 33442
    ·
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 02-CV-03383
JUDGE: Hon. Charles N. Clevert
DATE FILED: 12/13/2004
CLASS PERIOD START: 02/28/2000
CLASS PERIOD END: 08/21/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Ademi & O'Reilly, LLP
    3620 East Layton Ave., Ademi & O'Reilly, LLP, WI 53110
    866-264-3995 414-482-8001 · inquiry@ademilaw.com
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  3. Cauley Geller Bowman & Coates (Boca Raton, FL)
    2255 Glades Road Suite 421A, Cauley Geller Bowman & Coates (Boca Raton, FL), FL 33431
    561.750.3000 ·
  4. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  5. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  6. Law Offices of Brian M. Felgoise, P.C.
    Esquire at 261 Old York Road, Suite 423, Law Offices of Brian M. Felgoise, P.C., PA 19046
    215.886.1900 · securitiesfraud@comcast.net
  7. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
    100 Pine Street, Suite 2600, Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco), CA 94111
    415.288.4545 415.288.4534 · info@lerachlaw.com
  8. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  9. Milberg Weiss Bershad Hynes & Lerach LLP (Seattle, WA)
    1001 Fourth Avenue - Suite 3200, Milberg Weiss Bershad Hynes & Lerach LLP (Seattle, WA), WA 98154
    206.839.0730 ·
  10. Much Shelist Freed Denenberg Ament & Rubenstein, PC

    800-470-6824 312-621-1750 ·
  11. Much, Shelist, Freed, Denenberg, Ament & Eiger, P.C.
    200 N LaSalle St Ste 2100, Much, Shelist, Freed, Denenberg, Ament & Eiger, P.C., IL 60601
    312.346.3100 ·
  12. Murray, Frank & Sailer LLP (Milwaukee)
    3181 South 27th Street, Murray, Frank & Sailer LLP (Milwaukee), WI 53215
    866.264.3995 414.482.8001 · info@murrayfrank.com
  13. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  14. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  15. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
No Document Title Filing Date