Fidelity Management and Research Company (MUTF: FUSFX) Investor Securities Class Action Lawsuit 06/05/2008

If you purchased shares of Fidelity Ultra-Short Bond Fund (MUTF: FUSFX), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Fidelity
Case Name: 
Fidelity Shareholder Class Action Lawsuit 06/05/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
MUTF: FUSFX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/02/2008
Class Period Begin: 
06/06/2005
Class Period End: 
06/05/2008
Court of Filing: 
U.S. District Court for the District of Massachusetts
Deadline To File for Lead: 
08/04/2008
Date Settled: 
05/11/2012
Settlement Amount: 
$7,500,000
Deadline to Participate in Settlement: 
04/27/2012
Summary: 

May 11, 2012 - The court approved the settlement.

December 23, 2011 - The court preliminarily approved the settlement.

June 17, 2011 - Parties filed stipulation of settlement.

November 16, 2010 - The court granted the defendants' motion to dismiss in part and denied in part.

May 24, 2010 - The defendants filed a motion to dismiss.

April 8, 2010 - The lead plaintiff filed a second amended complaint.

April 8, 2010 - The court granted the defendants' motion to dismiss and granted plaintiff leave to file an amended complaint.

July 17, 2009 - Defendants filed a motion to dismiss.

April 23, 2009 - The lead plaintiff filed an amended complaint.

February 23, 2009 - The lead plaintiff and lead counsel were appointed.

August 4, 2008 - Lead plaintiff motions were filed.

June 5, 2008 - An investor in shares of the Fidelity Ultra-Short Bond Fund (MUTF: FUSFX) filed a lawsuit in the U.S. District Court for the District of Massachusetts against Fidelity Management and Research Company over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff charges Fidelity Management and Research Company and certain of its officers and directors with violations of the Securities Act of 1933. The complaint alleges that defendants issued materially false and misleading statements regarding Fidelity Management and Research Company's business and financial results.

The complaint alleges that on or about August 23, 2002, Fidelity Management and Research Company (MUTF: FUSFX) began offering shares of the Fidelity Ultra-Short Bond Fund pursuant to an initial registration statement, filed with the SEC as a Form 485BPOS (the Registration Statement). A class action has been commenced on behalf of purchasers of the Fidelity Ultra-Short Bond Fund who purchased the Fund within three years of the filing of this lawsuit. The complaint alleges that defendants solicited investors to purchase shares of the Fidelity Ultra-Short Bond Fund by making statements that described the Fund as a fund that: (i) “Seeks a high level of current income consistent with the preservation of capital”; (ii) “allocates its assets across different market sectors and maturities”; (iii) has a “similar overall interest rate risk to the Lehman Brothers® 6 Month Swap Index”; and (iv) is geared toward the “preservation of capital.” As alleged in the complaint, these statements were materially false and misleading because defendants did not adequately disclose the risks associated with investing in the Fund, including, for example, that the Fund was: (i) failing to compete with the Lehman Brothers® 6-Month Swap Index; and (ii) so heavily invested in high-risk mortgage-backed securities.

By June 11, 2007, defendants slowly began lowering the value of the share price for the Fidelity Ultra-Short Bond Fund. Since then, the value of the Fidelity Ultra-Short Bond Fund’s share price has been precipitously lowered. By November 15, 2007, the value of the per-share price was reduced below $9. The shares were trading as low as $8.25 as of the filing of the complaint.

Fidelity Management and Research Company is the investment advisor to the entire group of mutual funds under the Fidelity name.