SOURCE: Bronstein, Gewirtz & Grossman, LLC

June 13, 2008 15:55 ET

Bronstein, Gewirtz & Grossman, LLC Announces That a Class Action Has Been Filed Against Fidelity Ultra-Short Bond Fund

NEW YORK, NY--(Marketwire - June 13, 2008) - Bronstein, Gewirtz & Grossman, LLC announces that a class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of purchasers of the Fidelity Ultra-Short Bond Fund (the "Fund") (NASDAQ: FUSFX) who purchased the fund between June 6, 2005 and June 5, 2008 (the "Class Period"). The complaint charges Fidelity Management & Research Company, among others (the "Defendants"), with violations of the Securities Act of 1933.

The complaint alleges that on or about August 23, 2002, the Defendants began offering shares of the Ultra-Short Bond Fund pursuant to an initial registration statement, filed with the SEC as a Form 485BPOS (the "Registration Statement"). The complaint alleges that the Defendants solicited investors to purchase shares of the Ultra-Short Bond Fund by making statements that described the Fund as a fund that: (i) "Seeks a high level of current income consistent with the preservation of capital"; (ii) "allocates its assets across different market sectors and maturities"; (iii) has a "similar overall interest rate risk to the Lehman Brothers® 6 Month Swap Index"; and (iv) is geared toward the "preservation of capital." As alleged in the complaint, these statements were materially false and misleading because the Defendants did not adequately disclose the risks associated with investing in the Fund, including, for example, that the Fund was: (i) failing to compete with the Lehman Brothers® 6 Month Swap Index; and (ii) so heavily invested in high-risk mortgage-backed securities.

As alleged in the complaint, by June 11, 2007, the Defendants slowly began lowering the value of the share price for the Fund. By November 15, 2007, the value of the per-share price was reduced below $9. Since then the shares were trading as low as $8.25.

No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email eitan@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you wish to serve as lead plaintiff, you must move the court no later than August 4th, 2008.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate work, private securities offerings, and securities arbitration.

Contact Information

  • Contacts:
    Peretz Bronstein
    Eitan Kimelman
    Bronstein, Gewirtz & Grossman, LLC
    212-697-6484
    Email Contact