Federated Mutual Funds

The Pomerantz Firm has filed numerous actions intended to protect the interests of mutual fund investors by recovering monies lost as a result of misconduct by their funds' investment advisors. As part of this effort, the Pomerantz Firm has filed an action on behalf of a fund in the Federated family of funds against the fund's investment advisor, Federated Global Investment Management Corp. ("FGIM"), for breaches of fiduciary duty and violations of federal securities laws. The action alleges that FGIM, in breach of its obligations to the fund, allowed market timing and late trading in Federated fund shares for its own financial benefit. Market timing and late trading transactions seek to capitalize on the unique way in which mutual fund shares are priced. Such practices are improper, illegal, and damage mutual funds by (among other things) increasing transaction costs and disrupting the funds' stated portfolio management strategy. In short, these practices reduce the funds' long-term performance, and benefit a select few at the expense of the funds and all the funds' shareholders. Among other things, the action seeks rescission of the advisory agreement between the fund and its advisor, and return of the advisory fees paid in connection with those advisory services. The action was filed in federal court in New York but is now pending in federal court in Maryland pursuant to its transfer by a panel of federal judges. The Pomerantz Firm has been appointed lead counsel for all the actions brought on behalf of the Federated Mutual Funds. For more information, please contact Jeremy A. Lieberman, Esq., at 888-4-POMLAW, or via e-mail at jalieberman@pomlaw.com