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Case Status:    DISMISSED    
On or around 12/07/2005 (Other)

Filing Date: February 11, 2004

According to a press release dated April 15, 2007, the Second U.S. Circuit Court of Appeals affirmed a district court's dismissal of a class action suit based on §§ 34(b), 36(a) and 48(a) of the Investment Company Act (ICA), finding that the ICA sections do not provide private causes of action. In a class action, investors in Eaton Vance mutual funds sued Eaton Vance and various brokers of the mutual funds, alleging that Eaton Vance paid kickbacks to brokers who promoted Eaton Vance mutual funds. The investors named various brokers, including Morgan Stanley, Salomon Smith Barney and Wachovia, after the SEC fined and sanctioned Morgan Stanley for accepting impermissible payments from Eaton Vance. The investors claimed that Eaton Vance and the brokers had various kickback arrangements, including cash payments to brokers in return for the brokers' agreement to promote the sale of fund shares, directed brokerage to brokers, and excessive commission arrangements with brokers. The complaint made various claims, including violations of §§ 34(b), 36(a) and 48(a) of the ICA. The district court granted the defendants' motion to dismiss the claims based on §§ 34(b), 36(a) and 48(a) of the ICA. The investors appealed.

According to Eaton Vance Corporation’s FORM 10-K for the fiscal year ended October 31, 2006, on July 29, 2005, the Court issued an Opinion and Order dismissing the Lawsuit in its entirety and rejecting the plaintiffs’ request to amend their complaint. On December 6, 2005, the Court issued an Opinion and Order in response to plaintiffs’ motion for reconsideration and motion to file a new amended complaint. The Court adhered to its July Order and denied the motion to amend. The plaintiffs have appealed. Oral argument was heard by the appellate court on November 20, 2006, and the Company is awaiting a decision.

On April 29, 2004, the Court entered the Revised Stipulation and Pretrial Order No. 1 consolidating several actions under the first-filed Action, Paul Bellikoff v. Katon Vance Corp., et al., Master File No. 04cv1144 (JGK). On May 10, 2004, the Court entered the Revised Stipulation and Pretrial Order No. 2 designating Milberg, Weiss, Bershad, Hynes & Lerach LLP, as Plaintiffs' Lead Counsel and chair of the Executive Committee for plaintiffs in these Actions. On June 9, 2004, a Consolidated Amended Complaint was filed. On August 26, 2004, a Second Amended Complaint was filed, and the defendants responded by filing various motions to dismiss.

The original Complaint alleges that the Investment Adviser Defendants drew upon the assets of the Eaton Vance Funds to pay brokers to aggressively push Eaton Vance Funds over other funds, and that the Investment Adviser Defendants concealed such payments from investors by disguising them as brokerage commissions. Such brokerage commissions, though payable from fund assets, are not disclosed to investors in the Eaton Vance Funds public filings or elsewhere. Thus Eaton Vance Funds investors were induced to purchase Eaton Vance Funds by brokers who received undisclosed payments from the Investment Adviser Defendants to push Eaton Vance Funds over other mutual funds and who therefore had an undisclosed conflict of interest. Then, once invested in one or more of the Eaton Vance Funds, Eaton Vance Funds investors were charged and paid undisclosed fees that were improperly used to pay brokers to aggressively push Eaton Vance Funds to yet other brokerage clients.

Further, the complaint alleges that The Investment Adviser Defendants were motivated to make these secret payments to finance the improper marketing of Eaton Vance Funds because their fees were calculated as a percentage of funds under management and, therefore, tended to increase as the number of Eaton Vance Funds investors grew. The Investment Adviser Defendants attempted to justify this conduct on the ground that by increasing the Eaton Vance Funds assets they were creating economies of scale that inured to the benefit of investors but, in truth and in fact, Eaton Vance Funds investors received none of the benefits of these purported economies of sale. Rather, fees and costs associated with the Eaton Vance Funds steadily increased during the Class Period (as defined herein), in large part because the Investment Adviser Defendants continued to skim from the Eaton Vance Funds to finance their ongoing marketing campaign. The Eaton Vance Funds trustees, who purported to be Eaton Vance investor watchdogs, knowingly or recklessly permitted this conduct to occur.

Also, by engaging in this conduct, the Investment Adviser Defendants, 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. The Investment Adviser Defendants also violated Section 34(b) of the Investment Company Act because, to further their improper campaign, they 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 Investment Adviser Defendants and with respect to the improper uses to which the fees were put. Additionally, the Eaton Vance Funds trustees breached their common law fiduciary duties to the Eaton Vance Funds investors by knowingly or recklessly allowing the improper conduct alleged herein to occur and harm Eaton Vance Funds investors.

The following mutual funds are subject to this lawsuit:

Eaton Vance Advisers Senior Floating-Rate Fund (Nasdaq: EVAASFL)
Eaton Vance Alabama Municipals Fund (Nasdaq: ETALX, EVALX)
Eaton Vance Arizona Municipals Fund (Nasdaq: ETAZX, EVAZX)
Eaton Vance Arkansas Municipals Fund (Nasdaq: ETARX, EVARX)
Eaton Vance Asian Small Companies Fund (Nasdaq: EBASX, EVASX)
Eaton Vance Balanced Fund (Nasdaq: ECIFX, EMIFX, EVIFX)
Eaton Vance California Limited Maturity Municipals Fund (Nasdaq: ELCAX, EXCAX)
Eaton Vance California Municipals Fund (Nasdaq: EVCAX, EACAX)
Eaton Vance Classic Senior Floating Rate Fund (Nasdaq: EVACSFR)
Eaton Vance Colorado Municipals Fund (Nasdaq: ETCOX, EVCLX)
Eaton Vance Connecticut Municipals Fund (Nasdaq: ETCTX, EVCTX)
Eaton Vance Emerging Markets Fund (Nasdaq: EMEMX, ETEMX)
Eaton Vance Floating-Rate Fund (Nasdaq: EABLX, EBBLX, EVAFLRI, ECBLX, EVBLX)
Eaton Vance Floating-Rate High Income Fund (Nasdaq: EAFHX, EBFHX, ECFHX, EIFHX, EVFHX)
Eaton Vance Florida Insured Municipals Fund (Nasdaq: EAFIX, EBFIX)
Eaton Vance Florida Limited Maturity Municipals Fund (Nasdaq: ELFLX, EZFLX, EXFLX)
Eaton Vance Florida Municipals Fund (Nasdaq: ETFLX, EVFLX)
Eaton Vance Georgia Municipals Fund (Nasdaq: ETGAX, EVGAX)
Eaton Vance Global Growth Fund (Nasdaq: ECIAX, EDIAX, EMIAX, ETIAX)
Eaton Vance Government Obligations Fund (Nasdaq: ECGOX, EMGOX, EVGOX)
Eaton Vance Greater China Growth Fund (Nasdaq: ECCGX, EMCGX, EVCGX)
Eaton Vance Greater India Fund (Nasdaq: EMGIX, ETGIX)
Eaton Vance Growth Fund (Nasdaq: ECGFX, EMGFX, EVGFX)
Eaton Vance Hawaii Municipals Fund (Nasdaq: ETHWX, EVHWX)
Eaton Vance High Income Fund (Nasdaq: ECHIX, EVHIX)
Eaton Vance High Yield Municipals Fund (Nasdaq: ETHYX, EVHYX, ECHYX)
Eaton Vance Income Fund of Boston (Nasdaq: EVIBX, EIBIX, EBIBX, ECIBX)
Eaton Vance Institutional Senior Floating Rate-Fund (Nasdaq: EVASFLR)
Eaton Vance Kansas Municipals Fund (Nasdaq: ETKSX, EVKSX)
Eaton Vance Kentucky Municipals Fund (Nasdaq: ETKYX, EVKYX)
Eaton Vance Large Cap Core Fund (Nasdaq: EALCX, EBLCX, ECLCX)
Eaton Vance Large-Cap Value Fund (Nasdaq: ECSTX, EHSTX, EMSTX)
Eaton Vance Louisiana Municipals Fund (Nasdaq: ETLAX, EVLAX)
Eaton Vance Low Duration Fund (Nasdaq: EALDX, EBLDX, ECLDX)
Eaton Vance Maryland Municipals Fund (Nasdaq: ETMDX, EVMYX)
Eaton Vance Massachusetts Limited Maturity Municipals Fund (Nasdaq: ELMAX, EXMAX, EZMAX)
Eaton Vance Massachusetts Municipals Fund (Nasdaq: EVMAX, EVAMAMI, ETMAX)
Eaton Vance Michigan Municipals Fund (Nasdaq: ETMIX, EVMIX)
Eaton Vance Minnesota Municipals Fund (Nasdaq: ETMNX, EVMNX)
Eaton Vance Mississippi Municipals Fund (Nasdaq: ETMSX, EVMSX)
Eaton Vance Missouri Municipals Fund (Nasdaq: ETMOX, EVMOX)
Eaton Vance Municipal Bond Fund (Nasdaq: EVMBX, ETMBX, EBMBX)
Eaton Vance National Limited Maturity Municipals Fund (Nasdaq: ELNAX, EZNAX, EXNAX)
Eaton Vance National Municipals Fund (Nasdaq: EVHMX, ECHMX, EANAX, EIHMX)
Eaton Vance New Jersey Limited Maturity Municipals Fund (Nasdaq: ELNJX, EXNJX)
Eaton Vance New Jersey Municipals Fund (Nasdaq: ETNJX, EVNJX)
Eaton Vance New York Limited Maturity Municipals Fund (Nasdaq: ELNYX, EXNYX, EZNYX)
Eaton Vance New York Municipals Fund (Nasdaq: ETNYX, EVNYX)
Eaton Vance North Carolina Municipals Fund (Nasdaq: ETNCX, EVNCX)
Eaton Vance Ohio Limited Maturity Municipals Fund (Nasdaq: ELOHX, EXOHX)
Eaton Vance Ohio Municipals Fund (Nasdaq: ETOHX, EVOHX)
Eaton Vance Oregon Municipals Fund (Nasdaq: ETORX, EVORX)
Eaton Vance Pennsylvania Limited Maturity Municipals Fund (Nasdaq: EZPNX, ELPNX, EXPNX)
Eaton Vance Pennsylvania Municipals Fund (Nasdaq: ETPAX, EVPAX)
Eaton Vance Prime Rate Reserve (Nasdaq: EVAPRAT)
Eaton Vance Rhode Island Municipals Fund (Nasdaq: ETRIX, EVRIX)
Eaton Vance Small Cap Growth Fund (Nasdaq: EBSMX, ECSMX, ETEGX)
Eaton Vance Small Cap Value Fund (Nasdaq: EASCX, EAVSX, EBVSX, ECVSX)
Eaton Vance South Carolina Municipals Fund (Nasdaq: EASCX, EVSCX)
Eaton Vance Special Equities Fund (Nasdaq: ECSEX, EMSEX, EVSEX)
Eaton Vance Strategic Income Fund (Nasdaq: EVSGX)
Eaton Vance Tax Managed Equity Asset Allocation Fund (Nasdaq: EAEAX, EBEAX, ECEAX)
Eaton Vance Tax Managed Small Cap Growth Fund 1.2 (Nasdaq: EXMGX, EYMGX, EZMGX)
Eaton Vance Tax Managed Small Cap Value Fund (Nasdaq: ESVAX, ESVBX, ESVCX)
Eaton Vance Tax Managed Small-Cap Growth Fund 1.1 (Nasdaq: ECMGX, EMMGX, ETMGX)
Eaton Vance Tax-Managed Dividend Income Fund (Nasdaq: EADIX, EBDIX, ECDIX)
Eaton Vance Tax-Managed Growth Fund 1.0 (Nasdaq: CAPEX)
Eaton Vance Tax-Managed Growth Fund 1.1 (Nasdaq: EMTGX, ETTGX, ECTGX, EITMX, EVATMGS)
Eaton Vance Tax-Managed Growth Fund 1.2 (Nasdaq: EXTGX, EYTGX, EZTGX, EDTGX, EITGX)
Eaton Vance Tax-Managed International Growth Fund (Nasdaq: ECIGX, EDIGX, EMIGX, ETIGX)
Eaton Vance Tax-Managed Mid-Cap Core Fund (Nasdaq: EBMCX, ECMCX, EXMCX)
Eaton Vance Tax-Managed Multi-Cap Opportunity Fund (Nasdaq: EACPX, EBCPX, ECCPX)
Eaton Vance Tax-Managed Value Fund (Nasdaq: EATVX, EBTVX, ECTVX, EDTVX)
Eaton Vance Tennessee Municipals Fund (Nasdaq: ETTNX, EVTNX)
Eaton Vance Utilities Fund (Nasdaq: ECTMX, EMTMX, EVTMX)
Eaton Vance Virginia Municipals Fund (Nasdaq: ETVAX, EVVAX)
Eaton Vance West Virginia Municipals Fund (Nasdaq: ETWVX)
Eaton Vance Worldwide Health Sciences Fund (Nasdaq: ECHSX, EDHSX, EMHSX, ETHSX)
Eaton Vance-Atlanta Capital Intermediate Bond Fund (Nasdaq: ATLINBR, EIINX)
Eaton Vance-Atlanta Capital Large-Cap Growth Fund (Nasdaq: ATLLCGR, EILGX)
Eaton Vance-Atlanta Capital Small-Cap Fund (Nasdaq: ATLSMCR, EISMX)


Sector: Financial
Industry: Investment Services
Headquarters: United States


Ticker Symbol: N/A
Company Market: Privately Traded
Market Status: Privately Held

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: S.D. New York
DOCKET #: 04-CV-1144
JUDGE: Hon. John G. Koeltl
DATE FILED: 02/11/2004
CLASS PERIOD END: 11/17/2003
  1. Abraham, Fruchter & Twersky (New York, 42 Street)
  2. Law Offices of Charles J. Piven, P.A.
  3. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
  4. Stull, Stull & Brody (New York)
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 04-CV-1144
JUDGE: Hon. John G. Koeltl
DATE FILED: 08/26/2004
CLASS PERIOD END: 11/17/2003
  1. Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza)
  2. Glancy Binkow & Goldberg LLP (Los Angeles)
  3. Kahn & Associates, Ltd.
  4. Law Offices of Charles J. Piven, P.A.
  5. Milberg Weiss Bershad & Schulman LLP (New York)
  6. Murray, Frank & Sailer LLP
  7. Schiffrin & Barroway LLP
  8. Stull, Stull & Brody (New York)
  9. Wechsler Harwood LLP
  10. Weiss & Yourman (New York, NY)
No Document Title Filing Date
No Document Title Filing Date