The original class action was filed on behalf of investors who purchased class A shares of certain multi-class MFS stock mutual funds in the aggregate amount of less than $50,000 during the period.
The complaint alleges that, during the Class Period, defendants engaged in a scheme to defraud investors by disseminating prospectuses for the following mutual funds that contain incorrect, incomplete and misleading information: Massachusetts Investors Growth Stock Fund (MIGFX); Massachusetts Investors Trust (MITTX); MFS Aggressive Growth Allocation Fund (MAAGX); MFS Conservative Allocation Fund (MACFX); MFS Core Equity Fund (MRGAX); MFS Core Growth Fund (MFCAX); MFS Emerging Growth Fund (MFEGX); MFS Emerging Markets Equity Fund (MEMAX); MFS Global Equity Fund (MWEFX); MFS Global Growth Fund (MWOFX); MFS Global Total Return Fund (MFWTX); MFS Growth Allocation Fund (MAGWX); MFS International Diversification Fund (MDIDX); MFS International Growth Fund (MGRAX); MFS International New Discovery Fund (MIDAX); MFS International Value Fund (MGIAX); MFS Mid Cap Growth Fund (OTCAX); MFS Mid Cap Value Fund (MVCAX); MFS Moderate Allocation Fund (MAMAX); MFS New Discovery Fund (MNDAX); MFS New Endeavor Fund (MECAX); MFS Research Fund (MFRFX); MFS Research International Fund (MRSAX); MFS Sector Rotational Fund (SRFAX); MFS Strategic Value Fund (MSVTX); MFS Technology Fund (MTCAX); MFS Total Return Fund (MSFRX); MFS Union Standard Equity Fund (MUEAX); MFS Utilities Fund (MMUFX); and MFS Value Fund (MEIAX).
According to the complaint, the defendants, in contravention of their disclosure obligations, knowingly presented class A shares as the best performing share class for the long-term, causing the class members to purchase class A shares of the aforementioned mutual funds, when class B and/or class C shares would have been their best investment choice for any holding period. By making misleading disclosures in, and omitting material information from, the prospectuses for these funds, defendants earned excessive profits while the plaintiff and other class members suffered decreased returns on their investments.
On October 8, 2008, the defendants filed a motion to transfer the case to the District of Massachusetts. On November 13, 2008, the Honorable A. Richard Caputo granted the motion to appoint the lead plaintiff and approved lead plaintiff’s choice of Barrack, Rodos & Bacine; Bonnett Fairbourn Friedman & Balint, P.C.; and, Finkelstein & Krinsk, LLP, as co-lead counsel. On November 20, 2008, the case was transferred to the United States District Court for the District of Massachusetts.
On February 12, 2009, the defendants filed a motion to dismiss the Class Action Complaint. On March 5, 2009, the plaintiff filed a Notice of Voluntary Dismissal. According to the Notice, the parties hereto, by and through their undersigned counsel, hereby stipulate and agree that the action be, and it hereby is, dismissed with prejudice, with the parties, respectively, to bear their own costs and expenses.