Atlanta, GA (PRWEB) January 10, 2009
Notice is hereby given that a class action has been commenced in the Northern District of Georgia (Case No. 1:08-cv-3731) on behalf of customers of TD Ameritrade who purchased shares in the Reserve Yield Plus Fund ("Fund") during the period between July 27, 2007 and September 16, 2008 (the "Class Period").
For customers who purchased Fund shares through their TD Ameritrade account during the Class Period, they may request that the Court appoint them as lead plaintiff no later than 60 days from today. If they wish to discuss this action or have any questions concerning this notice, please contact G. Franklin Lemond, Jr., Esq. at Webb, Klase & Lemond, LLC by e-mail at contact(at)webbllc.com or by calling (770) 444-9325. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice.
The complaint charges the Fund, TD Ameritrade, Inc., TD Ameritrade Holding Corp., their affiliates, and certain of their officers and directors with violations of the Securities Exchange Act of 1934 and other statutory and common law provisions. The complaint alleges that, during the Class Period, defendants made materially false and misleading statements about the Fund's financial condition and operating results. Specifically, the complaint alleges Defendants failed to disclose: (i) that the Fund abandoned its stated objectives of preserving capital in an effort to achieve greater yields through the pursuit of risky instruments, such as Lehman Brothers commercial paper; (ii) that the Fund was not designed to protect the $1.00 net asset value of each share and was thus significantly riskier than money market funds; (iii) that the Fund's internal controls were inadequate to prevent the Fund from taking on excessive risk; (iv) that the extent of the Fund's relationship with TD Ameritrade was not disclosed; (v) that TD Ameritrade knowingly misrepresented the Fund's true characteristics; (vi) that the Fund's financial statements were not prepared in accordance with Generally Accepted Accounting Principles and, therefore, were materially false and misleading; and (vii) other material disclosures.
According to the complaint, on July 27, 2007, the Fund issued a statement representing the Fund's intention to maintain a $1.00 net asset value, consistent with alleged representations by TD Ameritrade personnel. On September 16, 2008, the net asset value collapsed from $1.00 per share to close at $0.97 allegedly due to the Fund's investments in risky instruments and securities.
Webb, Klase & Lemond, LLC is a law firm that practices complex litigation with a focus on litigation arising from wrongful deprivations by corporate and government entities. For more information, please visit http://www.webbllc.com.