Case Page

 

Case Status:    DISMISSED    
On or around 03/28/2006 (Date of order of final judgment)

Filing Date: June 14, 2004

On February 27, 2007 the judge entered his final order denying plaintiffs' motion to amend or reconsider the order of dismissal. The case has been dismissed with prejudice and no appeals have been filed.

On February 24, 2005, the defendants filed motions to dismiss the Plaintiffs’ Consolidated Amended Complaint. On March 28, 2006, the Court entered the Opinion signed by U.S. District Judge Robert W. Sweet, granting the defendants’ motion to dismiss the complaint. That day, Judgment was further entered. On April 11, 2006, the plaintiffs filed a motion to Amend/Correct the judgment. The motion is currently pending.

The complaint alleges that defendants charge “Excessive Fees” in Violation of Sections 34(b), 36(b) and 48(a) of the Investment Company Act and Sections 34(b), 36(b) and 48(a) of the Investment Company Act and Sections 206 and 215 of the Investment Advisers Act, and for Breach of Fiduciary Duty. Among other things, the Complaint alleges that the Investment Adviser Defendants drew upon the assets of the Evergreen Funds to pay brokers to aggressively push Evergreen 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 Evergreen Funds public filings or elsewhere. Thus Evergreen Funds investors were induced to purchase Evergreen Funds by brokers who received undisclosed payments from the Investment Adviser Defendants to push Evergreen Funds over other mutual funds and who therefore had an undisclosed conflict of interest. Then, once invested in one or more of the Evergreen Funds, Evergreen Funds investors were charged and paid undisclosed fees that were improperly used to pay brokers to aggressively push Evergreen Funds to yet other brokerage clients.

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

COMPANY INFORMATION:

Sector: Financial
Industry: Money Center Banks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: ETF
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-4453
JUDGE: Hon. Robert W Sweet
DATE FILED: 06/14/2004
CLASS PERIOD START: 06/14/1999
CLASS PERIOD END: 11/17/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. 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
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 04-CV-4453
JUDGE: Hon. Robert W Sweet
DATE FILED: 11/29/2004
CLASS PERIOD START: 06/14/1999
CLASS PERIOD END: 11/17/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. 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
  3. 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
  4. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.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
  6. WeissLaw LLP
    551 Fifth Avenue, Suite 1600, WeissLaw LLP, NY 10176
    212.682.3025 212.682-3010 · info@wllawny.com
  7. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
No Document Title Filing Date