Canary Class Actions and Certification Issues

BALTIMORE (HedgeWorld.com)–Charles J. Piven, a class action plaintiffs’ lawyer, has filed four class actions in courts across the country alleging improper trading practices by four mutual fund companies in connection with late trading of mutual fund shares by certain customers of the fund, including one or more hedge funds.

Mr. Piven’s complaints–one each for a state court in Colorado and Wisconsin: one for a federal court in California and another in New Jersey–define the plaintiff class as consisting of everyone who “purchased, redeemed, and/or held [shares] of any of the mutual funds referenced herein during the period that the conduct complained of occurred,” as he explained in a statement issued Sept. 8.

He has filed the Colorado action on behalf of participants in the funds managed by Janus Capital Management LLC; the Wisconsin action referencing funds managed by Strong Capital Management Inc.; the California action referencing funds managed by Bank of America Corp.; and the New Jersey action also referencing funds managed by both Janus and Strong as well as Bank One Investment Advisors Corp.

The complaint targets conduct that has become notorious since Elliott Spitzer, New York’s attorney general, announced his investigation and his office’s settlement with Canary Capital Partners LLC, Previous HedgeWorld Story. Mr. Piven’s complaint alleges that the conduct complained of occurred from May 3, 2001 through July 3, 2003.

No class has yet been certified in any of these actions, and Mr. Piven’s statement cautions class members that “until a class is certified, you are not represented unless you retain an attorney.” Mr. Piven declined Monday to comment beyond the prepared statement.

Professor/Activist Cautious About Class Certification