PHILADELPHIA, April 2 /PRNewswire/ — The law firm of Spector, Roseman &
Kodroff, P.C. announces that a class action lawsuit was commenced in the
United States District Court for the Southern District of New York on behalf
of purchasers, redeemers and holders of shares of American Express Financial
Advisors, Inc. (“AEFA” or the “Company”), between March 10, 1999 through
February 9, 2004, inclusive (the “Class Period”).
The following American Express Family of Funds are subject to this
lawsuit:
AXP Blue Chip Advantage Fund (Nasdaq: AXACX)
AXP Blue Chip Advantage Fund (Nasdaq: IBLUX)
AXP Blue Chip Advantage Fund (Nasdaq: IDBCX)
AXP Bond Fund Inc. (Nasdaq: IDBYX)
AXP Bond Fund Inc. (Nasdaq: INIBX)
AXP Bond Fund Inc. (Nasdaq: ININX)
AXP California Tax Exempt Fund (Nasdaq: ACABX)
AXP California Tax Exempt Fund (Nasdaq: ICALX)
AXP Discovery Fund Inc. (Nasdaq: IDIBX)
AXP Discovery Fund Inc. (Nasdaq: IDVYX)
AXP Discovery Fund Inc. (Nasdaq: INDYX)
AXP DIV EQTY C (Nasdaq: ADECX)
AXP DIVDND OPP C (Nasdaq: ACUIX)
AXP Diversified Equity Income Fund (Nasdaq: IDEBX)
AXP Diversified Equity Income Fund (Nasdaq: IDQYX)
AXP Diversified Equity Income Fund (Nasdaq: INDZX)
AXP DIVSFD BD C (Nasdaq: AXBCX)
AXP Emerging Markets Fund (Nasdaq: IDEAX)
AXP Emerging Markets Fund (Nasdaq: IEMBX)
AXP Equity Select Fund (Nasdaq: AESCX)
AXP Equity Select Fund (Nasdaq: IDQBX)
AXP Equity Select Fund (Nasdaq: IESYX)
AXP Equity Select Fund (Nasdaq: INVPX)
AXP Equity Value Fund (Nasdaq: IEVAX)
AXP Equity Value Fund (Nasdaq: INEGX)
AXP European Equity Fund Inc. (Nasdaq: AEEBX)
AXP European Equity Fund Inc. (Nasdaq: AXEAX)
AXP Extra Income Fund Inc. (Nasdaq: APECX)
AXP Extra Income Fund Inc. (Nasdaq: IEIBX)
AXP Extra Income Fund Inc. (Nasdaq: INEGX)
AXP Federal Income Fund Inc. (Nasdaq: IDFYX)
AXP Federal Income Fund Inc. (Nasdaq: IFINX)
AXP Federal Income Fund Inc. (Nasdaq: ISHOX)
AXP Federal Income Fund Inc. US Government Mortgage Fund (Nasdaq: AUGAX)
AXP Federal Income Fund Inc. US Government Mortgage Fund (Nasdaq: AUGBX)
AXP Federal Income Fund Inc. US Government Mortgage Fund (Nasdaq: AUGCX)
AXP Focus Growth Fund (Nasdaq: AFAFX)
AXP Focus Growth Fund (Nasdaq: AFTBX)
AXP Funds Core Bond Fund (Nasdaq: ACBAX)
AXP Funds Dividend Opportunity Fund (Nasdaq: INUTX)
AXP Funds Dividend Opportunity Fund (Nasdaq: IUTBX)
AXP Funds Income Opportunities Fund (Nasdaq: AIOAX)
AXP Funds Income Opportunities Fund (Nasdaq: AIOBX)
AXP Funds Limited Duration Bond Fund (Nasdaq: ALDAX)
AXP Funds Limited Duration Bond Fund (Nasdaq: ALDBX)
AXP Global Balanced Fund (Nasdaq: AGBYX)
AXP Global Balanced Fund (Nasdaq: IDGAX)
AXP Global Balanced Fund (Nasdaq: IGLOX)
AXP Global Bond Fund (Nasdaq: IGBBX)
AXP Global Bond Fund (Nasdaq: IGBFX)
AXP Global Bond Fund (Nasdaq: IGLOX)
AXP Global Equity Fund (Nasdaq: IDGBX)
AXP Global Equity Fund (Nasdaq: IDGYX)
AXP Global Equity Fund (Nasdaq: IGLGX)
AXP Global Technology Fund (Nasdaq: AXIAX)
AXP Global Technology Fund (Nasdaq: AXICX)
AXP Global Technology Fund (Nasdaq: INVBX)
AXP Growth Dimension Fund Inc. (Nasdaq: ABGDX)
AXP Growth Dimension Fund Inc. (Nasdaq: AXDAX)
AXP Growth Fund Inc. (Nasdaq: IGRBX)
AXP Growth Fund Inc. (Nasdaq: IGRYX)
AXP Growth Fund Inc. (Nasdaq: INIDX)
AXP Growth Series In Large Cap Value Fund (Nasdaq: ALVAX)
AXP Growth Series In Large Cap Value Fund (Nasdaq: ALVBX)
AXP GRTH C (Nasdaq: AXGCX)
AXP High Yield Tax Exempt Fund (Nasdaq: AHECX)
AXP High Yield Tax Exempt Fund (Nasdaq: IBCYX)
AXP High Yield Tax Exempt Fund (Nasdaq: IHYBX)
AXP High Yield Tax Exempt Fund (Nasdaq: INHYX)
AXP Insured Tax Exempt Fund (Nasdaq: IINBX)
AXP Insured Tax Exempt Fund (Nasdaq: IINSX)
AXP Intermediate Tax Exempt Fund (Nasdaq: INFAX)
AXP Intermediate Tax Exempt Fund (Nasdaq: INFBX)
AXP International Fund Inc. (Nasdaq: IDIYX)
AXP International Fund Inc. (Nasdaq: INIFX)
AXP International Fund Inc. (Nasdaq: IWWGX)
AXP International Series Inc. International Aggressive Growth Fund
(Nasdaq: APIBX)
AXP Investment Series Inc. Mid Cap Value Fund (Nasdaq: AMVAX)
AXP Investment Series Inc. Mid Cap Value Fund (Nasdaq: AMVBX)
AXP Large Cap Equity Fund (Nasdaq: ALEAX)
AXP Large Cap Equity Fund (Nasdaq: ALEBX)
AXP Large Cap Equity Fund (Nasdaq: ARQCX)
AXP Managed Allocation Fund Inc. (Nasdaq: IDRYX)
AXP Managed Allocation Fund Inc. (Nasdaq: IMRBX)
AXP Managed Allocation Fund Inc. (Nasdaq: IMRFX)
AXP Market Advantage Series Inc. Mid Cap Index Fund (Nasdaq: AMIDX)
AXP Massachusetts Tax Exempt Fund (Nasdaq: IDMAX)
AXP Michigan Tax Exempt Fund (Nasdaq: INMIX)
AXP Minnesota Tax Exempt Fund (Nasdaq: IDSMX)
AXP Minnesota Tax Exempt Fund (Nasdaq: IMNTX)
AXP Mutual Fund Inc. (Nasdaq: IDMBX)
AXP Mutual Fund Inc. (Nasdaq: IDMYX)
AXP Mutual Fund Inc. (Nasdaq: INMUX)
AXP New Dimension Fund Inc. (Nasdaq: ANDCX)
AXP New Dimension Fund Inc. (Nasdaq: AXGDX)
AXP New Dimension Fund Inc. (Nasdaq: IDNYX)
AXP New Dimension Fund Inc. (Nasdaq: INDBX)
AXP New Dimension Fund Inc. (Nasdaq: INNDX)
AXP New York Tax Exempt Fund (Nasdaq: INYKX)
AXP Ohio Tax Exempt Fund (Nasdaq: IOHIX)
AXP PART SMLCP B (Nasdaq: ASGBX)
AXP Partners Funds International Small Cap Fund (Nasdaq: AISCX)
AXP Partners Funds International Small Cap Fund (Nasdaq: APNBX)
AXP Partners International Series Inc. International Core Fund
(Nasdaq: AAICX)
AXP Partners International Series Inc. International Core Fund
(Nasdaq: APCBX)
AXP Partners International Series Inc. International Select Value Fund
(Nasdaq: APICX)
AXP Partners International Series Inc. International Select Value Fund
(Nasdaq: AXGAX)
AXP Partners International Series Inc. International Select Value Fund
(Nasdaq: AXIBX)
AXP Partners Series Inc. Fundamental Value Fund (Nasdaq: AFVCX)
AXP Partners Series Inc. Select Value Fund (Nasdaq: ACSVX)
AXP Partners Series Inc. Select Value Fund (Nasdaq: AXVAX)
AXP Partners Series Inc. Select Value Fund (Nasdaq: AXVBX)
AXP Partners Series Small Cap Value Fund (Nasdaq: APVCX)
AXP Partners Small Cap Growth Fund (Nasdaq: APRCX)
AXP Partners Small Cap Growth Fund (Nasdaq: AXSCX)
AXP Precious Metals Fund Inc. (Nasdaq: INPRX)
AXP Precious Metals Fund Inc. (Nasdaq: AXSCX)
AXP Progressive Fund Inc. (Nasdaq: INPRX)
AXP Progressive Fund Inc. (Nasdaq: IPRBX)
AXP PRTRS VL A (Nasdaq: AFVAX)
AXP PRTRS VAL A (Nasdaq: AVLAX)
AXP Research Opportunities Fund (Nasdaq: IRDAX)
AXP Research Opportunities Fund (Nasdaq: IROBX)
AXP S&P 500 Index Fund (Nasdaq: ADIDX)
AXP S&P 500 Index Fund (Nasdaq: ADIEX)
AXP Selective Fund Inc. (Nasdaq: ASLCX)
AXP Selective Fund Inc. (Nasdaq: IDEYX)
AXP Selective Fund Inc. (Nasdaq: INSEX)
AXP Selective Fund Inc. (Nasdaq: ISEBX)
AXP SM CAP VAL A (Nasdaq: ASVAX)
AXP SM CAP VAL B (Nasdaq: ASVBX)
AXP Small Companies Index Fund (Nasdaq: ISCYX)
AXP Small Companies Index Fund (Nasdaq: ISIAX)
AXP Small Companies Index Fund (Nasdaq: ISIBX)
AXP ST US GOV C (Nasdaq: AXFCX)
AXP State Tax Exempt Massachusetts Fund (Nasdaq: AXMBX)
AXP Stock Fund Inc. (Nasdaq: IDSBX)
AXP Stock Fund Inc. (Nasdaq: IDSYX)
AXP Stock Fund Inc. (Nasdaq: INSTX)
AXP Strategy Series Inc. Small Cap Advantage (Nasdaq: ADVCX)
AXP Strategy Service Inc. Strategy Aggressive Fund (Nasdaq: ASACX)
AXP Strategy Service Inc. Strategy Aggressive Fund (Nasdaq: ASAYX)
AXP Strategy Service Inc. Strategy Aggressive Fund (Nasdaq: INAGX)
AXP Strategy Service Inc. Strategy Aggressive Fund (Nasdaq: ISAAX)
AXP Tax Exempt Bond Fund Inc. (Nasdaq: INTAX)
AXP Tax Exempt Bond Fund Inc. (Nasdaq: ITEBX)
IDS Strategy Fund Inc. AXP Small Cap Advantage Fund (Nasdaq: ASAAX)
IDS Strategy Fund Inc. AXP Small Cap Advantage Fund (Nasdaq: ASABX)
The Complaint charges that defendants violated federal securities laws by
issuing a series of materially false and misleading statements to the market
throughout the Class Period which statements had the effect of artificially
inflating the market price of the Company’s securities. The Complaint alleges
that AEFA, through its financial advisors, purported to provide objective
investment and financial planning advice based on each client’s particular
financial needs without disclosing the financial advisors’ interest in
promoting (to the exclusion of other, possibly more suitable, funds) AEC Funds
and certain other preferred funds.
The Complaint further alleges that class
members were harmed by defendants’ fraudulent conduct because they paid AEFA a
substantial fee while believing that they would receive objective advice when,
in fact, defendants failed to disclose that AEFA financial advisors were
strongly motivated to and did advise their clients to purchase AEC Funds and
certain other preferred funds. The Complaint moreover alleges that, because of
the deception and manipulation alleged in the Complaint, AEFA clients were
dissuaded from making fully informed investment decisions and their trust
reposed in their AEFA advisors was misplaced.
If you purchased shares of mutual funds managed by American Express
Financial Advisors, Inc. during the Class Period, you may, no later than May
3, 2004, move to be appointed as a Lead Plaintiff in this class action. A
Lead Plaintiff is a representative, chosen by the Court, that acts on behalf
of other class members in directing the litigation. The Private Securities
Litigation Reform Act of 1995 directs Courts to assume that the class
member(s) with the “largest financial interest” in the outcome of the case
will best serve the class in this capacity. Courts have discretion in
determining which class member(s) have the “largest financial interest,” and
have appointed Lead Plaintiffs with substantial losses in both absolute terms
and as a percentage of their net worth.
If you have sustained substantial losses in American Express Financial
Advisors, Inc. Funds during the Class Period, please contact Spector, Roseman
& Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of
the Lead Plaintiff selection process. If you have relatively small losses,
your ability to participate in any recovery will be protected by the Lead
Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit
http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this
action or have any questions concerning this notice or your rights or
interests, please contact plaintiff’s counsel Andrew D. Abramowitz toll-free
at 888-844-5862 or via e-mail at classaction@srk-law.com. For more detailed
information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania,
concentrates its practice in complex litigation including actions dealing with
securities laws, antitrust, contract and commercial claims. The firm is
active in major litigation pending in federal and state courts throughout the
United States. The firm’s reputation for excellence has been recognized on
repeated occasions by courts which have appointed the firm as lead counsel in
numerous major class actions involving violations of the federal securities
laws and the federal antitrust laws, and consumer fraud. As a result of the
efforts of the firm, and its members, hundreds of millions of dollars have
been recovered on behalf of thousands of defrauded shareholders and companies.
