AllianceBernstein Family of Funds Investor Files Lawsuit

On October 2, 2003, the first in a series of securities class action complaints was filed against Alliance Capital Management L.P. (n/k/a AllianceBernstein L.P.) and related entities alleging market-timing and late trading in the AllianceBernstein family of mutual funds advised or managed by Alliance Capital Management L.P. in violation of the federal securities laws. A derivative action resulting from the same alleged market-timing and late trading practices was filed on October 8, 2003 and subsequently, the first ERISA class action complaint was filed on October 20, 2003. Plaintiffs’ claims focused on an alleged improper trading scheme, whereby defendants permitted certain investors to “market time” the AllianceBernstein Funds. Plaintiffs asserted, among other things, that defendants allowed select investors to take advantage of short-term inefficiencies in the pricing of the AllianceBernstein Funds, at the expense of long-term investors and, ultimately, the AllianceBernstein Funds themselves. The defendants have denied and continue to deny each and all of the claims and contentions alleged by the Plaintiffs in the actions.

The proposed settlement of the Mutual Funds Investment Litigation Alliance Sub-Track resolves the claims asserted in the securities class action, derivative action and ERISA class action lawsuits and provides for a total payment of $74,586,650, 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 Alliance Sub-Track.

If you purchased or held shares in certain mutual funds in the AllianceBernstein family of mutual funds advised or managed by Alliance Capital Management L.P. (n/k/a AllianceBernstein L.P.) that were adversely affected by market-timing and/or late trading during the period from October 1, 1998 to September 30, 2003, inclusive, you may be eligible to receive a payment from the settlement. Additionally, if you were a participant in or a beneficiary of the Alliance Plan (i.e., any profit sharing plan for the employees of Alliance Capital Management, L.P. or AllianceBernstein L.P. whose participants included members of the ERISA Class) at any time between October 2, 1998 and September 30, 2003 and your accounts included investments in the mutual funds at issue in the settlement and Alliance Holding Units, you may also 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 actions (i.e., the “Class Funds”). Additionally, if you currently hold shares in an AllianceBernstein mutual fund, or a successor fund of an AllianceBernstein mutual fund, certain of your rights may be affected by the settlement of the derivative claims.