Swank Energy Income Advisors LP ("Swank") is an American investment advisory company that invests primarily in natural resource companies.

According to a press release dated February 10, 2009, the Complaint alleges that throughout the Class Period, Defendants grossly and falsely overstated Fund's net asset value ("NAV") by including the full value of a $49.1 million deferred tax asset in the Fund's stated NAV, without establishing an appropriate valuation reserve against the risk that the Fund could or would never utilize or recognize the deferred tax asset.

The Complaint further alleges that during the Class Period, Defendants also concealed the fact that the deferred tax asset was the Fund's largest asset and accounted for more than one-half of the Fund's stated NAV.

On December 19, 2008, Defendants caused the Fund to announce that it had established a $49.1 million valuation reserve against the deferred tax asset, essentially reducing the value of the deferred tax asset to zero and reducing the Fund's stated NAV by $49.1 million.

When Defendants caused the Fund to write down the deferred tax asset to zero on December 19, 2008, and reduced the Fund's stated NAV accordingly, the market price at which the Fund's shares traded plummeted by nearly 50 percent, dropping from $7.40 immediately before the announcement to just $3.81 after it, causing Fund shareholders to lose tens of millions of dollars.

In ignorance of the false and misleading nature of the statements described in the Complaint, and the deceptive and manipulative devices and contrivances employed by said Defendants, Plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of the Fund's shares. Had Plaintiff and the other members of the Class known the truth, they would not have purchased said shares, or would not have purchased them at the inflated prices that were paid.

On April 20, 2009, the Court appointed the lead Plaintiff and approved the selection of co-lead Counsel. On June 04, 2009, a First Amended Class Action Complaint was filed by the Plaintiffs in the action. On January 06, 2010, in response to their previously filed motion, the US district court judge refused to dismiss a class action securities fraud claim against the Defendants.

According to a press release dated July 22, 2010, a hearing will be held on September 13, 2010, at 9:30 a.m. at the United States District Court for the Northern District of Texas (the “Federal Court”), Courtroom 1627, United States Courthouse, Dallas Division, 1100 Commerce Street, Dallas, Texas 75242, in connection with the proposed settlement (the “Settlement”) of the class action captioned Terri Morse Bachow v. Swank Energy Income Advisers, LP, et al., C.A. No. 3:09-CV-0262-K. The Court will determine whether to approve the Settlement of the class action before it as fair, reasonable, and adequate.

On September 13, 2010, an Order and Final Judgment was issued by the Court in accordance with the terms and conditions of the Stipulation and Agreement of Settlement dated May 17, 2010.

On March 29, 2011, an Order on the Unopposed Motion to Approve Payment of Net Settlement Fund to Authorized Claimants was granted by the Court.