SOURCE: Klayman & Toskes

June 13, 2008 18:29 ET

Notice to All Investors of Fidelity's Ultra-Short Bond Fund From the Securities Law Firm of Klayman & Toskes

NEW YORK, NY--(Marketwire - June 13, 2008) - The Securities Law Firm of Klayman & Toskes ("K&T") (www.nasd-law.com) announced today that investors who lost money in Fidelity's Ultra-Short Bond Fund ("Bond Fund" or "Fund") (NASDAQ: FUSFX) and who wish to inquire about the recently filed class action should contact K&T to discuss all of their legal options.

According to K&T's investigation, Fidelity solicited investors to purchase shares of its Bond Fund by making statements that described the Fund as one 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."

It appears that these statements were misleading as Fidelity did not properly disclose to investors the risks associated with investing in the Fund, including that the Fund was: (i) failing to compete with the Lehman Brothers® 6 Month Swap Index; and (ii) heavily invested in high-risk mortgage-backed securities. Reportedly, the Fidelity Bond Fund invested two thirds of its assets in subprime related securities.

As of June 11, 2007, Fidelity began to decrease the share price value of the Bond Fund. Since that time, the value of the Bond Fund has continued to decline. By November 2007, the value of the per-share price had been reduced to below $9. The fund has fallen 6.8% this year and 13% over the past 12 months.

If you lost $50,000 or more in Fidelity's Ultra-Short Bond Fund, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, for a free consultation regarding your legal rights and remedies. You may also visit us on the web at http://www.nasd-law.com.

Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

NASDAQ: FUSFX

Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.
    888-997-9956
    http://www.nasd-law.com