PHILADELPHIA, Dec. 9, 2003 (PRIMEZONE) -- Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit is pending in the United States District Court for the Southern District of New York on behalf of purchasers, redeemers and holders of shares of the Alger Mutual Funds set forth below ("Alger Funds" or the "Funds") between November 1, 1998 and September 3, 2003, inclusive ("Class Period").
The Funds that are the subject of this suit and their symbols are as follows:
Alger SmallCap Portfolio (Nasdaq: ALSAX, ALSCX, AGSCX) Alger SmallCap and MidCap Portfolio (Nasdaq: ALMAX, ALMBX, ALMCX) Alger MidCap Growth Portfolio (Nasdaq: AMGAX, AMCGX, AMGCX) Alger LargeCap Growth Portfolio (Nasdaq: ALGAX, AFGPX, ALGCX) Alger Capital Appreciation Portfolio (Nasdaq: ACAAX, ACAPX, ALCCX) Alger Health Sciences Portfolio (Nasdaq: AHSAX, AHSBX, AHSCX) Alger Balanced Portfolio (Nasdaq: ALBAX, ALGBX, ALBCX) Alger Small Cap Institutional Fund (Nasdaq: ALSRX, ASIRX) Alger MidCap Institutional Fund (Nasdaq: ALMRX, ALGRX) Alger LargeCap Growth Institutional Fund (Nasdaq: ALGRX, ALGIX) Alger Capital Appreciation Institutional Fund (Nasdaq: ALARX, ACARX) Alger Balanced Institutional Fund (Nasdaq: ABLRX, ABIRX) Alger Socially Responsible Growth Institutional Fund (Nasdaq: ASRGX, ASRRX) Spectra Fund (Nasdaq: SPEAX, SPECX)
The Complaint charges Fred Alger Management, Inc., the Alger Funds, Veras Investment Partners, Inc., and others with violating the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and with common law breach of fiduciary duties.
Specifically, it is alleged that during the Class Period, defendants failed to disclose that they improperly allowed certain favored investors, including Veras Investment Partners, Inc., to engage in the "market-timing" of their transactions in the Funds. Market timing is short term, arbitrage trading that exploits inefficiencies in the way mutual funds are priced. Market timing injures long term mutual fund investors, who are not allowed to engage in such practices, by, among other things, diluting the profits they would otherwise receive and concentrating their losses. Allegedly, in return for receiving extra fees from Veras Investment Partners and other favored investors, Fred Alger Management, and the other Alger defendants, allowed and facilitated market-timing activities by Veras Investment Partners and others, at the expense of class members and despite restrictions on these practices in the prospectuses of the Funds.
If you purchased, held, or redeemed the Funds during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than January 5, 2004.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. 78u-4).
If you have sustained substantial losses in Alger Funds during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.