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Case Status:    SETTLED
On or around 07/19/2007 (Date of order of final judgment)

Filing Date: March 04, 2004

According to a press release dated July 24, 2007, on July 19, 2007, U.S. District Court Judge Deborah A. Batts, Southern District of New York, entered an order granting final approval of a $100 million settlement of the class action lawsuit brought by customers of American Express Financial Advisors ("AEFA," now known as Ameriprise Financial Services, Inc.) NYSE: AMP. As part of the settlement, AEFA also agreed to adopt and implement specific remedial measures. The settlement resolves claims that AEFA violated federal securities laws and breached fiduciary duties by perpetrating a scheme to defraud its investing clients. Specifically, it is alleged that AEFA, while claiming to provide objective financial planning and advice tailored to its clients, actually dispensed standardized recommendations and employed incentive programs for financial advisors to sell American Express proprietary products. AEFA has denied any wrongdoing or that its clients have suffered any damages. This settlement resolves five consolidated actions filed in New York, plus a related action in Arizona.

In a press release dated October 24, 2005, Ameriprise Financial has reached a comprehensive settlement regarding the consolidated securities class action lawsuit filed against the company, its former parent and affiliates in October 2004 called, "In re American Express Financial Advisors Securities Litigation." The settlement, under which the company denies any liability, includes a one-time payment of $100 million to the class members. The settlement is subject to court approval. The class members include individuals who purchased mutual funds in the company's Preferred Provider Program, Select Group Program, or any similar revenue sharing program; purchased mutual funds sold under the American Express(R) or AXP(R) brand; or purchased for a fee financial plans or advice from the company between March 10, 1999 and through the date on which a formal stipulation of settlement is signed.

The original complaint alleges that defendant violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission, and all amendments thereto, by issuing a series of material misrepresentations to American Express Financial Advisors, Inc. (AEFA) clients during the Class Period. Specifically, the complaint alleges that AEFA, through its financial advisors, purported to provide objective investment and financial planning advice based on each client's particular circumstances in life but, in fact, had an undisclosed interest in pushing AEC Funds and certain other preferred funds, which were among the poorest performing mutual funds on the market. The Complaint further alleges that class members were harmed by defendants' fraudulent conduct because they paid AEFA a substantial fee and believed they were receiving objective advice when, in fact, AEFA financial advisors were strongly motivated to and did advise their clients to purchase AEC Funds and certain other preferred funds. The Complaint further alleges that because of such deception and manipulation, AEFA clients were prevented from making fully informed investment decisions and that their trust reposed in their AEFA advisors was violated.

The Funds, and the symbols for the respective Funds, that may be subject to the lawsuit are as follows:


AXACX AXP Blue Chip Advantage Fund;
IBLUX AXP Blue Chip Advantage Fund;
IDBCX AXP Blue Chip Advantage Fund;
IDBYX AXP Bond Fund Inc;
INBNX AXP Bond Fund Inc;
ININX AXP Bond Fund Inc;
ACABX AXP California Tax Exempt Fund;
ICALX AXP California Tax Exempt Fund;
IDIBX AXP Discovery Fund Inc;
IDVYX AXP Discovery Fund Inc;
INDYX AXP Discovery Fund Inc;
ADECX AXP DIV EQTY C;
ACUIX AXP DIVDND OPP C;
IDEBX AXP Diversified Equity Income Fund;
IDQYX AXP Diversified Equity Income Fund;
INDZX AXP Diversified Equity Income Fund;
AXBCX AXP DIVSFD BD C;
IDEAX AXP Emerging Markets Fund;
IEMBX AXP Emerging Markets Fund;
AESCX AXP Equity Select Fund;
IDQBX AXP Equity Select Fund;
IESYX AXP Equity Select Fund;
INVPX AXP Equity Select Fund;
IEVAX AXP Equity Value Fund;
INEGX AXP Equity Value Fund (NASDAQ: AEEBX);
AXP European Equity Fund Inc;
AXEAX AXP European Equity Fund Inc (NASDAQ: APECX);
AXP Extra Income Fund Inc;
IEIBX AXP Extra Income Fund Inc;
INEAX AXP Extra Income Fund Inc;
IDFYX AXP Federal Income Fund Inc;
IFINX AXP Federal Income Fund Inc;
ISHOX AXP Federal Income Fund Inc;
AUGAX AXP Federal Income Fund Inc US Government Mortgage Fund;
AUGBX AXP Federal Income Fund Inc US Government Mortgage Fund;
AUGCX AXP Federal Income Fund Inc US Government Mortgage Fund;
AFAFX AXP Focus Growth Fund;
AFTBX AXP Focus Growth Fund;
ACBAX AXP Funds Core Bond Fund;
INUTX AXP Funds Dividend Opportunity Fund;
IUTBX AXP Funds Dividend Opportunity Fund;
AIOAX AXP Funds Income Opportunities Fund;
AIOBX AXP Funds Income Opportunities Fund;
ALDAX AXP Funds Limited Duration Bond Fund;
ALDBX AXP Funds Limited Duration Bond Fund;
AGBYX AXP Global Balanced Fund;
IDGAX AXP Global Balanced Fund;
IGBBX AXP Global Balanced Fund;
AGBCX AXP Global Bond Fund;
IGBFX AXP Global Bond Fund;
IGLOX AXP Global Bond Fund;
IDGBX AXP Global Equity Fund;
IDGYX AXP Global Equity Fund;
IGLGX AXP Global Equity Fund;
AXIAX AXP Global Technology Fund;
AXICX AXP Global Technology Fund;
INVBX AXP Global Technology Fund;
ABGDX AXP Growth Dimension Fund Inc;
AXDAX AXP Growth Dimension Fund Inc;
IGRBX AXP Growth Fund Inc;
IGRYX AXP Growth Fund Inc;
INIDX AXP Growth Fund Inc;
ALVAX AXP Growth Series Inc Large Cap Value Fund;
ALVBX AXP Growth Series Inc Large Cap Value Fund;
AXGCX AXP GRTH C;
AHECX AXP High Yield Tax Exempt Fund;
IBCYX AXP High Yield Tax Exempt Fund;
IHYBX AXP High Yield Tax Exempt Fund;
INHYX AXP High Yield Tax Exempt Fund;
IINBX AXP Insured Tax Exempt Fund;
IINSX AXP Insured Tax Exempt Fund;
INFAX AXP Intermediate Tax Exempt Fund;
INFBX AXP Intermediate Tax Exempt Fund;
IDIYX AXP International Fund Inc;
INIFX AXP International Fund Inc;
IWWGX AXP International Fund Inc;
APIBX AXP International Series Inc International Aggressive Growth Fund;
AMVAX AXP Investment Series Inc Mid Cap Value Fund;
AMVBX AXP Investment Series Inc Mid Cap Value Fund;
ALEAX AXP Large Cap Equity Fund;
ALEBX AXP Large Cap Equity Fund;
ARQCX AXP Large Cap Equity Fund;
IDRYX AXP Managed Allocation Fund Inc;
IMRBX AXP Managed Allocation Fund Inc;
IMRFX AXP Managed Allocation Fund Inc;
AMIDX AXP Market Advantage Series Inc Mid Cap Index Fund;
IDMAX AXP Massachusetts Tax Exempt Fund;
INMIX AXP Michigan Tax Exempt Fund;
IDSMX AXP Minnesota Tax Exempt Fund;
IMNTX AXP Minnesota Tax Exempt Fund;
IDMBX AXP Mutual Fund Inc;
IDMYX AXP Mutual Fund Inc;
INMUX AXP Mutual Fund Inc;
ANDCX AXP New Dimension Fund Inc;
AXGDX AXP New Dimension Fund Inc;
IDNYX AXP New Dimension Fund Inc;
INDBX AXP New Dimension Fund Inc;
INNDX AXP New Dimension Fund Inc;
INYKX AXP New York Tax Exempt Fund;
IOHIX AXP Ohio Tax Exempt Fund;
ASGBX AXP PART SMLCP B;
APIAX AXP PARTNERS A;
AISCX AXP Partners Funds International Small Cap Fund;
APNBX AXP Partners Funds International Small Cap Fund ;
AAICX AXP Partners International Series Inc International Core Fund;
APCBX AXP Partners International Series Inc International Core Fund;
APICX AXP Partners International Series Inc International Select Value Fund;
AXGAX AXP Partners International Series Inc International Select Value Fund;
AXIBX AXP Partners International Series Inc International Select Value Fund;
AFVCX AXP Partners Series Inc Fundamental Value Fund;
ACSVX AXP Partners Series Inc Select Value Fund;
AXVAX AXP Partners Series Inc Select Value Fund;
AXVBX AXP Partners Series Inc Select Value Fund;
AXSAX AXP Partners Series Inc Small Cap Core Fund;
AXSBX AXP Partners Series Inc Small Cap Core Fund;
AFVBX AXP Partners Series Inc Value Fund;
AVFBX AXP Partners Series Inc Value Fund;
AVUCX AXP Partners Series Inc Value Fund;
APVCX AXP Partners Series Small Cap Value Fund;
APRCX AXP Partners Small Cap Growth Fund;
AXSCX AXP Partners Small Cap Growth Fund;
INPBX AXP Precious Metals Fund Inc;
INPMX AXP Precious Metals Fund Inc;
INPRX AXP Progressive Fund Inc;
IPRBX AXP Progressive Fund Inc;
AFVAX AXP PRTNRS VL A;
AVLAX AXP PRTRS VAL A;
IRDAX AXP Research Opportunities Fund;
IROBX AXP Research Opportunities Fund;
ADIDX AXP S&P 500 Index Fund;
ADIEX AXP S&P 500 Index Fund (NASDAQ: ASLCX);
AXP Selective Fund Inc;
IDEYX AXP Selective Fund Inc;
INSEX AXP Selective Fund Inc;
ISEBX AXP Selective Fund Inc;
ASVAX AXP SM CAP VAL A;
ASVBX AXP SM CAP VAL B
ISCYX AXP Small Companies Index Fund;
ISIAX AXP Small Companies Index Fund;
ISIBX AXP Small Companies Index Fund;
AXFCX AXP ST US GOV C;
AXMBX AXP State Tax Exempt Massachusetts Fund;
IDSBX AXP Stock Fund Inc;
IDSYX AXP Stock Fund Inc;
INSTX AXP Stock Fund Inc;
ADVCX AXP Strategy Series Inc Small Cap Advantage Fund (NASDAQ: ASACX);
AXP Strategy Service Inc Strategy Aggressive Fund;
ASAYX AXP Strategy Service Inc Strategy Aggressive Fund;
INAGX AXP Strategy Service Inc Strategy Aggressive Fund;
ISAAX AXP Strategy Service Inc Strategy Aggressive Fund;
INTAX AXP Tax Exempt Bond Fund Inc;
ITEBX AXP Tax Exempt Bond Fund Inc;
ASAAX IDS Strategy Fund Inc AXP Small Cap Advantage Fund;
ASABX IDS Strategy Fund Inc AXP Small Cap Advantage Fund

Note: The action is brought on behalf of AEFA clients who purchased units of AEC mutual funds during the Class Period.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
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: S.D. New York
DOCKET #: 04-CV-1773
JUDGE: Hon. Deborah A. Batts
DATE FILED: 03/04/2004
CLASS PERIOD START: 03/10/1999
CLASS PERIOD END: 02/09/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  2. Girard Gibbs & De Bartolomeo LLP
    601 California Street, Suite 1400, Girard Gibbs & De Bartolomeo LLP, CA 94108
    415.981.4800 415.981.4846 · girardgibbs@girardgibbs.com
  3. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  4. Milberg Weiss Bershad & Schulman LLP (Boca Raton)
    5355 Town Center Road, Suite 900, Milberg Weiss Bershad & Schulman LLP (Boca Raton), FL 33486
    561.361.5000 561.367.8400 ·
  5. 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 ·
  6. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  7. Spector, Roseman & Kodroff (Philadelphia)
    1818 Market Street; Suite 2500, Spector, Roseman & Kodroff (Philadelphia), PA 19103
    215.496.0300 215.496.6610 · classaction@srk-law.com
  8. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 04-CV-1773
JUDGE: Hon. Deborah A. Batts
DATE FILED: 09/29/2005
CLASS PERIOD START: 03/10/1999
CLASS PERIOD END: 02/09/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Girard Gibbs & De Bartolomeo LLP
    601 California Street, Suite 1400, Girard Gibbs & De Bartolomeo LLP, CA 94108
    415.981.4800 415.981.4846 · girardgibbs@girardgibbs.com
  2. Girard Gibbs LLP (San Francisco)
    601 California Street, Suite 1400, Girard Gibbs LLP (San Francisco), CA 94108
    415.981.4800 415.981.4846 · mail@girardgibbs.com
  3. Milberg Weiss & Bershad LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss & Bershad LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  4. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  5. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
No Document Title Filing Date