SOURCE: Kaplan Fox & Kilsheimer LLP

September 18, 2008 10:14 ET

Kaplan Fox Seeks to Recover Losses for Investors Who Purchased Auction Rate Securities From Northern Trust

NEW YORK, NY--(Marketwire - September 18, 2008) - Kaplan Fox & Kilsheimer LLP ( has filed a class action suit in the United States District Court for the Southern District of New York against Northern Trust Securities, Inc., Northern Trust Corporation, and Northern Trust Company ("Northern Trust" or the "Company") that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers of Northern Trust's auction rate securities during the period between September 16, 2003 through February 13, 2008, inclusive (the "Class Period").

The Complaint alleges that during the Class Period, Northern Trust materially misrepresented the liquidity of and risks associated with auction rate securities and omitted material facts about the auction rate securities market, including: 1) misrepresenting that auction rate securities were like cash and were highly liquid, safe investments for short-term investing; 2) misrepresenting that the auction rate securities offered by Northern Trust were equivalent to cash or money market funds and were safe, highly liquid short-term investment vehicles and that cash could be received in a matter of days; 3) failing to disclose to purchasers of auction rate securities material facts about these securities; and 4) failing to disclose that these securities were not cash alternatives, like money market funds, and were instead, complex, long-term financial instruments with 30-year maturity dates, or longer.

In fact, as alleged in the Complaint, even though a number of auctions began to fail in the Summer of 2007 and thereafter, Northern Trust continued to encourage investors to purchase auction rate securities and continued to represent to investors that these securities were like cash or money market accounts and were highly liquid, safe investments for short-term investing, without adequately disclosing the risks associated with the securities. As further alleged, on February 13, 2008, 87% of all auctions of auction rate securities failed when all of the major broker-dealers, including UBS, Goldman Sachs, Lehman Brothers, Citigroup and Merrill Lynch, among others, refused to continue to support the auctions. As a result of the withdrawal of support by all of the major broker-dealers, the market for auction rate securities collapsed, rendering more than $300 billion of outstanding securities illiquid.

If you are a member of the proposed Class, you may move the court no later than November 17, 2008 to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, or to review a copy of the complaint filed in this action, you may visit our website at

Contact Information

  • If you have any questions about this Notice, the action, your rights, or
    your interests, please e-mail us at or contact:

    Jeffrey P. Campisi
    850 Third Avenue, 14th Floor
    New York, New York 10022
    (800) 290-1952
    (212) 687-1980
    Fax: (212) 687-7714
    E-mail address:

    Laurence D. King
    350 Sansome Street, Suite 400
    San Francisco, California 94104
    (415) 772-4700
    Fax: (415) 772-4707
    E-mail address: