SOURCE: Stull, Stull & Brody

September 16, 2005 19:37 ET

Stull, Stull & Brody Announces Class Action Against UBS-AG on Behalf of Purchasers of MFS Mutual Funds

NEW YORK, NY -- (MARKET WIRE) -- September 16, 2005 -- Notice is hereby given that a class action lawsuit was filed on July 29, 2005 in the United States District Court for the Southern District of New York against UBS-AG and its affiliated entities ("UBS"), on behalf of those who purchased MFS mutual funds from UBS between May 1, 2000 and April 30, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").

The MFS mutual funds and their respective symbols are as follows:

MFS Capital Opportunities Fund (NASDAQ: MCOFX), (NASDAQ: MCOBX), (NASDAQ: MCOCX), (NASDAQ: MFCRX), (NASDAQ: MCOTX), (NASDAQ: EACOX), (NASDAQ: EBCOX), (NASDAQ: ECCOX), (NASDAQ: MCOIX)

MFS Core Growth Fund (NASDAQ: MFCAX), (NASDAQ: MFCBX), (NASDAQ: MFCCX), (NASDAQ: MCFRX), (NASDAQ: MCRRX), (NASDAQ: MFCIX)

MFS Emerging Growth Fund (NASDAQ: MEGRX), (NASDAQ: MEGBX), (NASDAQ: MFECX), (NASDAQ: MFERX), (NASDAQ: MEGRX), (NASDAQ: EAGRX), (NASDAQ: EBEGX), (NASDAQ: ECEGX), (NASDAQ: MFEGX), (NASDAQ: MFEIX)

MFS Growth Opportunities Fund (NASDAQ: MGOFX), (NASDAQ: MGOBX)

MFS Large Cap Growth Fund (NASDAQ: MCGAX), (NASDAQ: MCGBX)

MFS Managed Sectors Fund (NASDAQ: MMNSX), (NASDAQ: MSEBX), (NASDAQ: MMNCX)

MFS Mid Cap Growth Fund (NASDAQ: OTCAX), (NASDAQ: OTCBX), (NASDAQ: OTCCX), (NASDAQ: MMCRX), (NASDAQ: MCPRX), (NASDAQ: EAMCX), (NASDAQ: EBCGX), (NASDAQ: ECGRX), (NASDAQ: OTCIX)

MFS New Discovery Fund (NASDAQ: MNDAX), (NASDAQ: MNDBX), (NASDAQ: MNDCX), (NASDAQ: MFNRX), (NASDAQ: MNDRX), (NASDAQ: EANDX), (NASDAQ: EBNDX), (NASDAQ: ECNDX), (NASDAQ: MNDIX)

MFS New Endeavor Fund (NASDAQ: MECAX), (NASDAQ: MECBX), (NASDAQ: MECCX), (NASDAQ: MNERX), (NASDAQ: MENRX), (NASDAQ: MECIX)

MFS Research Fund (NASDAQ: MFRFX), (NASDAQ: MFRBX), (NASDAQ: MFRCX), (NASDAQ: MFRRX), (NASDAQ: MSRRX), (NASDAQ: EARFX), (NASDAQ: EBRFX), (NASDAQ: ECRFX)

MFS Strategic Growth Fund (NASDAQ: MFSGX), (NASDAQ: MSBGX), (NASDAQ: MFGCX), (NASDAQ: MSGRX), (NASDAQ: MSTRX), (NASDAQ: EASGX), (NASDAQ: EBSGX), (NASDAQ: ECSGX), (NASDAQ: MSGIX)

MFS Technology Fund (NASDAQ: MTCAX), (NASDAQ: MTCBX), (NASDAQ: MTCCX), (NASDAQ: MTQRX), (NASDAQ: MTERX), (NASDAQ: MTCIX)

Massachusetts Investors Growth Stock (NASDAQ: MIGFX), (NASDAQ: MIGBX), (NASDAQ: MIGDX), (NASDAQ: MIGRX), (NASDAQ: MIRGX), (NASDAQ: EISTX), (NASDAQ: EMIVX), (NASDAQ: EMICX), (NASDAQ: MGTIX)

MFS Mid Cap Value Fund (NASDAQ: MVCAX), (NASDAQ: MCBVX), (NASDAQ: MVCCX), (NASDAQ: MMVRX), (NASDAQ: MCVRX), (NASDAQ: EACVX), (NASDAQ: EBCVX), (NASDAQ: ECCVX), (NASDAQ: MCVIX)

MFS Research Growth and Income Fund (NASDAQ: MRGAX), (NASDAQ: MRGBX), (NASDAQ: MRGCX), (NASDAQ: MGIRX), (NASDAQ: MRERX), (NASDAQ: MRGRX)

MFS Strategic Value Fund (NASDAQ: MSVTX), (NASDAQ: MSVCX), (NASDAQ: MQSVX), (NASDAQ: MSVRX), (NASDAQ: MVSRX), (NASDAQ: EASVX), (NASDAQ: EBSVX), (NASDAQ: ECSVX), (NASDAQ: MSVLX), (NASDAQ: MISVX)

MFS Total Return Fund (NASDAQ: MSFRX), (NASDAQ: MTRBX), (NASDAQ: MTRCX), (NASDAQ: MFTRX), (NASDAQ: MTRRX), (NASDAQ: EATRX), (NASDAQ: EBTRX), (NASDAQ: ECTRX), (NASDAQ: MTRIX)

MFS Union Standard Equity Fund (NASDAQ: MUEAX), (NASDAQ: MUSBX), (NASDAQ: MUECX), (NASDAQ: MUSEX)

MFS Utilities Fund (NASDAQ: MMUFX), (NASDAQ: MMUBX), (NASDAQ: MMUCX), (NASDAQ: MMURX), (NASDAQ: MURRX), (NASDAQ: MMUIX)

MFS Value Fund (NASDAQ: MEIAX), (NASDAQ: MFEBX), (NASDAQ: MEICX), (NASDAQ: MFVRX), (NASDAQ: MVRRX), (NASDAQ: EAVLX), (NASDAQ: EBVLX), (NASDAQ: ECVLX), (NASDAQ: MEIIX)

Massachusetts Investors Trust (NASDAQ: MITTX), (NASDAQ: MITBX), (NASDAQ: MITCX), (NASDAQ: MITRX), (NASDAQ: MIRTX), (NASDAQ: EAMTX), (NASDAQ: EBMTX), (NASDAQ: ECITX), (NASDAQ: MITIX)

MFS Aggressive Growth Allocation Fund (NASDAQ: MAAGX), (NASDAQ: MBAGX), (NASDAQ: MCAGX), (NASDAQ: MAARX), (NASDAQ: MAWAX), (NASDAQ: EAGTX), (NASDAQ: EBAAX), (NASDAQ: ECAAX), (NASDAQ: MIAGX)

MFS Conservative Allocation Fund (NASDAQ: MACFX), (NASDAQ: MACBX), (NASDAQ: MACVX), (NASDAQ: MACRX), (NASDAQ: MCARX), (NASDAQ: ECLAX), (NASDAQ: EBCAX), (NASDAQ: ECACX), (NASDAQ: MACIX)

MFS Growth Allocation Fund (NASDAQ: MAGWX), (NASDAQ: MBGWX), (NASDAQ: MCGWX), (NASDAQ: MGARX), (NASDAQ: MGALX), (NASDAQ: EAGWX), (NASDAQ: EBGWX), (NASDAQ: ECGWX), (NASDAQ: MGWIX)

MFS Moderate Allocation Fund (NASDAQ: MAMAX), (NASDAQ: MMABX), (NASDAQ: MMACX), (NASDAQ: MAMRX), (NASDAQ: MARRX), (NASDAQ: MAMDX), (NASDAQ: EBMDX), (NASDAQ: ECMAX), (NASDAQ: MMAIX)

MFS Bond Fund (NASDAQ: MFBFX), (NASDAQ: MFBBX), (NASDAQ: MFBCX), (NASDAQ: MFBRX), (NASDAQ: MBRRX), (NASDAQ: EABDX), (NASDAQ: EBBDX), (NASDAQ: ECBDX), (NASDAQ: MBDIX)

MFS Emerging Markets Debt Fund (NASDAQ: MEDAX), (NASDAQ: MEDBX), (NASDAQ: MEDCX), (NASDAQ: MEDIX)

MFS Government Limited Maturity Fund (NASDAQ: MGLFX), (NASDAQ: MGLBX), (NASDAQ: MGLCX)

MFS Government Mortgage Fund (NASDAQ: MGMTX), (NASDAQ: MGTBX), (NASDAQ: MGMIX)

MFS Government Securities Fund (NASDAQ: MFGSX), (NASDAQ: MFGBX), (NASDAQ: MFGDX), (NASDAQ: MGSRX), (NASDAQ: MGVSX), (NASDAQ: EAGSX), (NASDAQ: EBGSX), (NASDAQ: ECGSX)

MFS High Income Fund (NASDAQ: MHITX), (NASDAQ: MHIBX), (NASDAQ: MHICX), (NASDAQ: EAHIX), (NASDAQ: EMHBX), (NASDAQ: EMHCX), (NASDAQ: MHIIX), (NASDAQ: MHIRX)

MFS High Yield Opportunities Fund (NASDAQ: MHOAX), (NASDAQ: MHOBX), (NASDAQ: MHOCX), (NASDAQ: MHOIX)

MFS Intermediate Investment Grade Bond Fund (NASDAQ: MGBFX), (NASDAQ: MGBVX), (NASDAQ: MGBCX), (NASDAQ: MGBEX), (NASDAQ: MIBRX)

MFS Limited Maturity Fund (NASDAQ: MQLFX), (NASDAQ: MQLBX), (NASDAQ: MQLCX), (NASDAQ: EALMX), (NASDAQ: EBLMX), (NASDAQ: ELDCX), (NASDAQ: MLDRX)

MFS Research Bond Fund (NASDAQ: MRBFX), (NASDAQ: MRBBX), (NASDAQ: MRBCX), (NASDAQ: EARBX), (NASDAQ: EBRBX), (NASDAQ: ECRBX), (NASDAQ: MRBIX), (NASDAQ: MRBRX)

MFS Strategic Income Fund (NASDAQ: MFIOX), (NASDAQ: MIOBX), (NASDAQ: MIOCX), (NASDAQ: MFIIX)

MFS Alabama Municipal Bond Fund (NASDAQ: MFALX), (NASDAQ: MBABX)

MFS Arkansas Municipal Bond Fund (NASDAQ: MFARX), (NASDAQ: MBARX)

MFS California Municipal Bond Fund (NASDAQ: MCFTX), (NASDAQ: MBCAX), (NASDAQ: MCCAX)

MFS Florida Municipal Bond Fund (NASDAQ: MFFLX), (NASDAQ: MBFLX)

MFS Georgia Municipal Bond Fund (NASDAQ: MMGAX), (NASDAQ: MBGAX)

MFS Maryland Municipal Bond Fund (NASDAQ: MFSMX), (NASDAQ: MBMDX)

MFS Massachusetts Municipal Bond Fund (NASDAQ: MFSSX), (NASDAQ: MBMAX)

MFS Mississippi Municipal Bond Fund (NASDAQ: MISSX), (NASDAQ: MBMSX)

MFS Municipal Bond Fund (NASDAQ: MMBFX), (NASDAQ: MMBBX)

MFS Municipal Limited Maturity Fund (NASDAQ: MTLFX), (NASDAQ: MTLBX), (NASDAQ: MTLCX)

MFS New York Municipal Bond Fund (NASDAQ: MSNYX), (NASDAQ: MBNYX), (NASDAQ: MCNYX)

MFS North Carolina Municipal Bond Fund (NASDAQ: MSNCX), (NASDAQ: MBNCX), (NASDAQ: MCNCX)

MFS Pennsylvania Municipal Bond Fund (NASDAQ: MFPAX), (NASDAQ: MBPAX)

MFS South Carolina Municipal Bond Fund (NASDAQ: MFSCX), (NASDAQ: MBSCX)

MFS Tennessee Municipal Bond Fund (NASDAQ: MSTNX), (NASDAQ: MBTNX)

MFS Virginia Municipal Bond Fund (NASDAQ: MSVAX), (NASDAQ: MBVAX), (NASDAQ: MVACX)

MFS West Virginia Municipal Bond Fund (NASDAQ: MFWVX), (NASDAQ: MBWVX)

MFS Emerging Markets Equity Fund (NASDAQ: MEMAX), (NASDAQ: MEMCX), (NASDAQ: MEMIX), (NASDAQ: MEMBX)

MFS Global Equity Fund (NASDAQ: MWEFX), (NASDAQ: MWEBX), (NASDAQ: MWECX), (NASDAQ: MWEIX), (NASDAQ: MGERX)

MFS Global Growth Fund (NASDAQ: MWOFX),

(NASDAQ: MWOBX), (NASDAQ: MWOCX), (NASDAQ: MWOIX), (NASDAQ: MGLRX)

MFS Global Total Return Fund (NASDAQ: MFWTX), (NASDAQ: MFWBX), (NASDAQ: MFWCX), (NASDAQ: MFWIX), (NASDAQ: MGRRX)

MFS International Growth Fund (NASDAQ: MGRAX), (NASDAQ: MGRBX), (NASDAQ: MGRCX), (NASDAQ: MQGIX)

MFS International New Discovery Fund (NASDAQ: MIDAX), (NASDAQ: MIDBX), (NASDAQ: MIDCX), (NASDAQ: EAIDX), (NASDAQ: EBIDX), (NASDAQ: ECIDX), (NASDAQ: MWNIX), (NASDAQ: MINRX)

MFS International Value Fund (NASDAQ: MGIAX), (NASDAQ: MGIBX), (NASDAQ: MGICX), (NASDAQ: MINIX)

MFS Research International Fund (NASDAQ: MRSAX), (NASDAQ: MRIBX), (NASDAQ: MRICX), (NASDAQ: EARSX), (NASDAQ: EBRIX), (NASDAQ: ECRIX), (NASDAQ: MRSIX), (NASDAQ: MRIRX)

If you purchased any of the MFS mutual funds through a UBS broker between May 1, 2000 through April 30, 2005, inclusive, and sustained damages, you may, no later than September 30, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

The action is pending in the United States District Court for the Southern District of New York against defendant UBS and its affiliated entities. The following mutual funds participated in the UBS Revenue Sharing Program (the "UBS Tier I Funds"): AIM, Alliance, American Funds, Columbia, Davis Funds, Dreyfus, Eaton Vance, Federated, Fidelity, Franklin Templeton, John Hancock, Hartford, Lord Abbett, MFS, Oppenheimer, PIMCO, Pioneer, Putnam, Scudder, UBS Global Asset Management, and Van Kampen.

The complaint alleges that during the Class Period, defendants served as financial advisors who purportedly provided unbiased and honest investment advice to their clients. Unbeknownst to investors, defendants, in clear contravention of their disclosure obligations and fiduciary responsibilities, failed to properly disclose that they had engaged in a scheme to aggressively push UBS sales personnel to steer clients into purchasing certain UBS Funds and UBS Tier I Funds (collectively, "Shelf Space Funds") that provided financial incentives and rewards to UBS and its personnel based on sales. The complaint alleges that defendants' undisclosed sales practices created an insurmountable conflict of interest by providing substantial monetary incentives to sell Shelf-Space Funds to their clients, even though such investments were not in the clients' best interest. UBS' failure to disclose the incentives constituted violations of federal securities laws.

The action also includes a subclass of people who held any shares of UBS Mutual Funds. The complaint additionally alleges that the investment advisor subsidiary of UBS, UBS Global Asset Management created further undisclosed material conflicts of interest by entering into revenue sharing agreements with UBS financial Advisors to push investors into UBS proprietary funds, regardless of whether such investments were in the investors' best interests. The investment advisors financed these arrangements by illegally charging excessive and improper fees to the fund that should have been invested in the underlying portfolio. In doing so, they breached their fiduciary duties to investors under the Investment Company Act and state law and decreased shareholders' investment returns.

The action includes a second subclass of persons who purchased a UBS Financial Plan that held Tier I mutual funds. The UBS Financial Plans include, but are not limited to UBS Personalized Asset Consulting and Evaluation Plan, InsightOne accounts, and/or a resource management accounts.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Contact Information

  • Contact:
    Tzivia Brody, Esq
    Stull, Stull & Brody
    1-800-337-4983
    SSBNY@aol.com
    212/490-2022