Alger Mutual Funds Investors File Lawsuit

On October 31, 2003, the first in a series of securities class action complaints was filed against Fred Alger Management, Inc. and related entities alleging market-timing and late trading in the mutual funds in the Alger Fund Complex advised and/or managed by Fred Alger Management, Inc. in violation of the federal securities laws. A derivative action resulting from the same alleged market-timing and late trading practices was filed on November 24, 2003. Plaintiffs’ claims focused on an alleged improper trading scheme, whereby defendants permitted certain investors to “market time” the Alger Funds. Plaintiffs asserted, among other things, that defendants allowed select investors to take advantage of short-term inefficiencies in the pricing of the Alger Funds, at the expense of long-term investors and, ultimately, the Alger Funds themselves. The defendants have denied and continue to deny each and all of the claims and contentions alleged by Plaintiffs in the actions.

The proposed settlement of the Mutual Funds Investment Litigation Alger Sub-Track resolves the claims asserted in both the securities and derivative actions and provides for a total payment of $4,828,800, funded on behalf of five separate groups of defendants. For more information regarding the breakdown of this payment or further details regarding the settlement with a specific group of defendants, please review the Long-Form Notice. By Order dated May 19, 2010, the Honorable J. Frederick Motz granted preliminary approval to the settlement of the Mutual Funds Investment Litigation Alger Sub-Track.

If you purchased or held shares in certain mutual funds in the Alger Fund Complex advised and/or managed by Fred Alger Management, Inc. during the period from November 1, 1998 to September 3, 2003, inclusive, you may be eligible to receive a payment from the settlement. Please review the Long-Form Notice, to see if you purchased or held shares in the mutual funds at issue in the settlement of the class action. Additionally, if you currently hold shares in an Alger mutual fund, or a successor fund, certain of your rights may be affected by the settlement of the derivative claims.