Ameriprise Wants Audio Tapes Of Reserve Fund Staff Calls Released
The plot continues to thicken in the legal saga involving Ameriprise Financial Services and a money-market fund that broke the buck recently. Ameriprise, which is suing Reserve Management Company’s Primary Fund, wants a federal judge to hand over audio tapes that reportedly contain conversations of sales reps alerting large institutional investors in the fund to redeem their shares at full value before it was too late.
If the allegations are true, the selective disclosure would have financially devastated thousands of Ameriprise investors. As reported Oct. 21, 2008, in the New York Times, Ameriprise and its clients had more than $3.3 billion in the Primary Fund when it “broke the buck” on Sept. 16 by falling below a dollar a share. Two smaller funds broke the buck, as well.
The Primary Fund is calling the selective disclosure charge by Ameriprise “outrageous.”
Our affiliation of securities lawyers is actively involved in advising individual and in stitutional investors in evaluating their legal options when confronted with subprime and other mortgage-related investment losses.
