On March 15, 2005, the Court entered the Stipulation and Order signed by U.S. District Judge James Ware. By the Stipulation and Order, Lead Plaintiff has agreed to resolve all of its claims against the defendants in this action by voluntarily dismissing with prejudice her individual claims alleged in this action. Further, Lead Plaintiff and defendants have agreed to jointly request a voluntary dismissal without prejudice of the individual claims of absent class members of the putative class in this action. The action is dismissed with prejudice as to Lead Plaintiff and without prejudice as to absent members of the putative class.
The complaint charges defendants with violations of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and for common law breach of fiduciary duties. More specifically, the complaint alleges that during the Class Period the defendants engaged in illegal and improper trading practices, in concert with certain institutional traders, which caused financial injury to the shareholders of the Fremont Funds. According to the Complaint, the Defendants surreptitiously permitted certain favored investors, including the Doe Defendants, to illegally engage in 'timing' of the Fremont Funds whereby these favored investors were permitted to conduct short-term, 'in and out' trading of mutual fund shares, despite explicit restrictions on such activity in the Fremont Funds' prospectuses.
The Funds and the symbols for the respective Funds subject to the lawsuit are as follows:
Fremont Global Fund (Nasdaq: FMAFX - News)
Fremont International Growth Fund (Nasdaq: FIGFX - News)
Fremont Large Cap Value Fund (Formerly Fremont New Era Value Fund) (Nasdaq: FNEVX - News)
Fremont Large Cap Growth Fund (Formerly Fremont New Era Growth Fund) (Nasdaq: FNEGX - News)
Fremont Structured Core Fund (Formerly Fremont Growth Fund) (Nasdaq: FEQFX - News)
Fremont U.S. Small Cap Fund (Nasdaq: FUSSX - News)
Fremont U.S. Micro-Cap Fund (Nasdaq: FUSMX - News)
Fremont Real Estate Securities Fund (Nasdaq: FREFX - News)
Fremont Bond Fund (Nasdaq: FBDFX - News)
Fremont California Intermediate Tax-Free Fund (Nasdaq: FCATX - News)
Fremont Money Market Fund (Nasdaq: FRMXX - News)