NEW YORK, NY — (MARKET WIRE) — 09/17/2003 — A class action lawsuit was commenced in the Northern District of Illinois, Eastern Division, on behalf of all purchasers, redeemers and holders ofmutual fund shares or other ownership interests of one or more of the One Group Funds from September 12, 1998 through the present (the “Class Period”). Bank One Corporation (NYSE: ONE) and Bank OneInvestment Advisors are also defendants in the action. A copy of the complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website athttp://www.bernlieb.com or contact us at (800) 217-1522 or by email at OneGroup@bernlieb.com.
The One Group Funds, and their respective symbols, are as follows:
One Group Technology Fund (NASDAQ: OGTAX), (NASDAQ: OGTBX), (NASDAQ: OGTCX), (NASDAQ: OGTIX);
One Group Health Sciences Fund (NASDAQ: OHSAX), (NASDAQ: OHSBX), (NASDAQ: OHSCX), (NASDAQ: OHSIX);
One Group Diversified International Fund (NASDAQ: PGIEX), (NASDAQ: ONIBX), (NASDAQ: OGDCX), (NASDAQ: WOIEX);
One Group International Equity Index Fund (NASDAQ: OEIAX), (NASDAQ: OGEBX), (NASDAQ: OIICX), (NASDAQ: OIEAX);
One Group Small Cap Growth Fund (NASDAQ: PGSCX), (NASDAQ: OGFBX), (NASDAQ: OSGCX), (NASDAQ: OGGFX);
One Group Small Cap Value Fund (NASDAQ: PSOAX), (NASDAQ: PSOBX), (NASDAQ: OSVCX), (NASDAQ: PSOPX);
One Group Market Expansion Index Fund (NASDAQ: OMEAX), (NASDAQ: OMEBX), (NASDAQ: OMECX), (NASDAQ: PGMIX);
One Group Mid Cap Growth Fund (NASDAQ: OSGIX), (NASDAQ: OGOBX), (NASDAQ: OMGCX), (NASDAQ: HLGEX);
One Group Mid Cap Value Fund (NASDAQ: OGDIX), (NASDAQ: OGDBX), (NASDAQ: OMVCX), (NASDAQ: HLDEX);
One Group Diversified Mid Cap Fund (NASDAQ: PECAX), (NASDAQ: ODMBX), (NASDAQ: ODMCX), (NASDAQ: WOOPX);
One Group Large Cap Growth Fund (NASDAQ: OLGAX), (NASDAQ: OGLGX), (NASDAQ: OLGCX);
One Group Large Cap Value Fund (NASDAQ: OLVAX), (NASDAQ: OLVBX), (NASDAQ: OLVCX), (NASDAQ: HLQVX);
One Group Diversified Equity Fund (NASDAQ: PAVGX), (NASDAQ: OVBGX), (NASDAQ: ODECX), (NASDAQ: OGVFX);
One Group Equity Index Fund (NASDAQ: OGEAX), (NASDAQ: OGEIX), (NASDAQ: OEICX), (NASDAQ: HLEIX);
One Group Equity Income Fund (NASDAQ: OIEIX), (NASDAQ: OGIBX), (NASDAQ: OINCX), (NASDAQ: HLIEX);
One Group Balanced Fund (NASDAQ: OGASX), (NASDAQ: OAMAX), (NASDAQ: OAMBX), (NASDAQ: OGAFX);
One Group Investor Growth Fund (NASDAQ: ONGAX), (NASDAQ: OGIGX), (NASDAQ: OGGCX), (NASDAQ: ONIFX);
One Group Investor Growth & Income Fund (NASDAQ: ONGIX), (NASDAQ: ONEBX), (NASDAQ: ONECX), (NASDAQ: ONGFX);
One Group Investor Balanced Fund (NASDAQ: OGIAX), (NASDAQ: OGBBX), (NASDAQ: OGBCX), (NASDAQ: OIBFX);
One Group Investor Conservative Growth Fund (NASDAQ: OICAX), (NASDAQ: OICGX), (NASDAQ: OCGCX), (NASDAQ: ONCFX);
One Group Tax-Free Bond Fund (NASDAQ: PMBAX), (NASDAQ: PUBBX), (NASDAQ: PRBIX);
One Group Arizona Municipal Bond Fund (NASDAQ: OAMAX), (NASDAQ: OAMBX), (NASDAQ: OGAFX);
One Group Kentucky Municipal Bond Fund (NASDAQ: OKYAX), (NASDAQ: ONKBX), (NASDAQ: TRKMX);
One Group Louisiana Municipal Bond Fund (NASDAQ: PGLAX), (NASDAQ: ONLBX), (NASDAQ: OGLFX);
One Group Michigan Municipal Bond Fund (NASDAQ: PEIAX), (NASDAQ: OMIBX), (NASDAQ: WOMBX);
One Group Ohio Municipal Bond Fund (NASDAQ: ONOHX), (NASDAQ: OOHBX), (NASDAQ: HLOMX);
One Group West Virginia Municipal Bond Fund (NASDAQ: OQWAX), (NASDAQ: OGWBX), (NASDAQ: OGWFX);
One Group Municipal Income Fund (NASDAQ: OTBAX), (NASDAQ: OTBBX), (NASDAQ: OMICX), (NASDAQ: HLTAX);
One Group Intermediate Tax-Free Bond Fund (NASDAQ: ONTAX), (NASDAQ: ONFBX), (NASDAQ: HLTIX);
One Group Short-term Municipal Bond Fund (NASDAQ: OGLUX), (NASDAQ: OVBXB), (NASDAQ: OSTCX), (NASDAQ: HLLVX);
One Group High Yield Bond Fund (NASDAQ: OHYAX), (NASDAQ: OGHBX), (NASDAQ: OGHGX), (NASDAQ: OHYFX);
One Group Income Bond Fund (NASDAQ: ONIAX), (NASDAQ: OINBX), (NASDAQ: OBDCX), (NASDAQ: HLIPX);
One Group Bond Fund (NASDAQ: PGBOX), (NASDAQ: OBOBX), (NASDAQ: OBOCX), (NASDAQ: WOBDX);
One Group Government Bond Fund (NASDAQ: OGGAX), (NASDAQ: OGGBX), (NASDAQ: OGVCX), (NASDAQ: HLGAX);
One Group Mortgage Backed Securities Fund (NASDAQ: OMBAX), (NASDAQ: OMBIX);
One Group Intermediate Bond Fund (NASDAQ: OGBAX), (NASDAQ: OBDBX), (NASDAQ: OIMCX), (NASDAQ: SEIFX);
One Group Treasury & Agency Fund (NASDAQ: OTABX), (NASDAQ: ONTBX), (NASDAQ: F001CX), (NASDAQ: OGTFX);
One Group Short-Term Bond Fund (NASDAQ: OGLVX), (NASDAQ: OVBXB), (NASDAQ: OSTCX), (NASDAQ: HLLVX);
One Group Ultra Short-Term Bond Fund (NASDAQ: ONUAX), (NASDAQ: ONUBX), (NASDAQ: OGUCX), (NASDAQ: HLGFX);
One Group Market Neutral Fund (NASDAQ: OGNAX);
One Group Ohio Municipal Money Market Fund (NASDAQ: HLOMX), (NASDAQ: ONOHX), (NASDAQ: OOHBX);
One Group Michigan Municipal Money Market Fund (NASDAQ: WMIXX), (NASDAQ: PEMXX);
One Group Municipal Money Market Fund (NASDAQ: HTOXX), (NASDAQ: OGIXX);
One Group Prime Money Market Fund (NASDAQ: HLPXX), (NASDAQ: HPIXX), (NASDAQ: OPBXX), (NASDAQ: OPCXX);
One Group U.S. Government Securities Money Market Fund (NASDAQ: OMAXX), (NASDAQ: OMIXX); and
One Group U.S. Treasury Securities Money Market Fund (NASDAQ: HGOXX), (NASDAQ: HTIXX), (NASDAQ: OTBXX), (NASDAQ: OTCXX).
The complaint charges that defendants violated their fiduciary duties to their customers in return for substantial fees and other income for themselves and their affiliates. The complaint further charges that defendants violated Section 34(b) of the Investment Company Act of 1940 and committed common law fraud.
The complaint alleges, among other things, that part of defendants’ scheme was “late trading” of mutual fund shares by select customers of the fund (including hedge funds). Specifically, the complaint alleges that certain of defendants’ mutual fund investors, including Canary Capital Partners, LLC and Canary Investment Management, LLC (collectively, “Canary”), improperly arranged with defendants that orders Canary placed after 4 p.m. on a given day would illegally receive that day’s price (as opposed to the next day’s price, which the order would have received had it been processed lawfully). This allowed Canary and other mutual fund investors who engaged in the same wrongful course of conduct to capitalize on post 4:00 p.m. information while those who bought their mutual fund shares lawfully could not.
The complaint further alleges that defendants’ engaged in a wrongful conduct defined as “Timing”. Timing is an investment technique involving short-term, “in and out” trading of mutual fund shares. This technique is designed to exploit inefficiencies in the way mutual fund companies price their shares. It is widely acknowledged that “Timing” inures to the detriment of long-term shareholder. Nonetheless, in return for investments that would increase fund managers’ fees, fund managers entered into undisclosed agreements to allow “Timing”.
In fact, certain mutual fund companies have employees (generally referred to as the “timing police”) who are supposed to detect “timers” and put a stop to their short-term trading activity. Nonetheless, defendants arranged to give Canary and other market timers a “pass” with the timing police, who would look the other way rather than attempt to shut down their short-term trading.
Further, the mutual fund prospectuses for the funds at issue created the misleading impression that mutual funds were vigilantly protecting investors against the negative effects of timing. In fact, the opposite was true: defendants sold the right to time their funds to Canary and other hedge fund investors. The prospectuses were silent about these arrangements.
Plaintiff seeks to recover damages on behalf of all purchasers, redeemers and holders of mutual fund shares or other ownership interests of one or more of the One Group Funds during the Class Period. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential Class member, you may contact Ms. Linda Flood, Director of Shareholder Relations, at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, (800) 217- 1522 or (212) 779-1414 or by e-mail at OneGroup@bernlieb.com.
Ms. Linda Flood Director of Shareholder Relations Bernstein Liebhard & Lifshitz, LLP 10 East 40th Street New York, New York 10016 (800) 217-1522 or (212) 779-1414 OneGroup@bernlieb.com.
