Current Cases

Reserve Yield Plus Funds | Company Ticker: RYPYX

Date Filed: November 25, 2008
Court: U.S. District Court
Location: New York

On Jan. 26, 2009, Hagens Berman Sobol Shapiro ("HBSS") filed a motion in the United States District Court for the Southern District of New York to appoint the Reserve Yield Plus Fund Investor Group as Lead Plaintiff in a class-action lawsuit on behalf of purchasers and holders of certain mutual funds offered by the Reserve Short-Term Investment Trust. Affected funds include the Reserve Yield Plus Fund traded under the following ticker symbols: (NASDAQ:RYPYX; NASDAQ:RYPTX; NASDAQ:RYPJX; NASDAQ:RYPQX).

The Reserve Yield Plus Fund Investor Group also asked the court to appoint HBSS as lead counsel for the class.

The lawsuit claims the trust, its parent and affiliates, violated federal securities laws. The lawsuit alleges shareholders purchased funds based on misleading statements or omissions related to the safety and liquidity of the investment.

In September 2008, news broke that shares dropped below $1.00, marking the second time in history a money market fund 'broke the buck', resulting in the fund's collapse.

The suit seeks to represent anyone who purchased or held funds from July 27, 2007 to Sept. 16, 2008. The class includes purchasers or holders of the Reserve Yield Plus Fund in connection with the July 27, 2007 offering.

If you are affected by these practices and would like to join this class action, please click here to contact attorneys. If you have information related to this case, please contact plaintiffs counsel, Steve Berman or Reed Kathrein of Hagens Berman at (888) 381-2889 or (510) 725-3000 or reserve@hbsslaw.com

RECENT DEVELOPMENTS:
Sept. 28, 2009 - Today Judge Paul Gardephe appointed Hagens Berman Sobol Shapiro lead counsel in the Reserve Yield Plus Litigation and the Reserve Yield Plus Fund Investor Group lead plaintiff. The court ruled the investor group is most capable of representing the interests of class members in litigation.

Today's decision comes after HBSS presented oral argument to the court on Aug. 5, 2009, to determine lead counsel and lead plaintiff for litigation.

You can read the court's order appointing HBSS as lead counsel here.

Nov. 22, 2009 - Hagens Berman Sobol Shapiro filed an amended complaint in the United States District Court for the Southern District of New York in a class-action lawsuit on behalf of purchasers and holders of the Reserve Yield Plus Fund ("Fund").

The amended compliant expands the factual basis of the allegations, and adds more TD Ameritrade related defendants. The amendments also deletes claims against the independent trustees and the Fund itself as those claims were subject to reimbursement by the Fund, or the payment of defense costs under the trust agreement. Claims against certain other Reserve related defendants were also limited so that any judgment would not be indemnifiable by the Fund pursuant to any agreements.

These changes were made after negotiation with the SEC and counsel for the Fund and the independent trustees so that distribution of the remaining assets of the Fund could be expedited.

Click here to view or download the complaint.