There are two settlements in this Bank of America/Nations Funds sub-track: the Nations Settlement and the Canary Severed Settlement. Together, the Settlements resolve all the claims in this sub-track.
You do not need to submit a claim to participate in this settlement.
On September 3, 2003, the New York Attorney General brought an enforcement action against Canary Capital Partners, LLC (“Canary Capital”) alleging that Canary Capital had market-timed and late-traded the Nations Funds and various other mutual fund families. Shortly thereafter, various mutual fund shareholders commenced class and derivative actions in different courts across the country alleging market-timing and late-trading in the Nations Funds and numerous other mutual fund families. These actions, including actions brought on behalf of the Nations Funds shareholders, were eventually consolidated for pre-trial proceedings in the United States District Court for the District of Maryland. The cases relating to trading in the Nations Funds were organized into this “Bank of America/Nations sub-track.” On September 29, 2004, various plaintiffs in this sub-track filed consolidated amended complaints, including a securities class complaint, a class complaint pursuant to the Employee Retirement Income Security Act of 1974 (“ERISA”), and a derivative action (collectively, the “Actions”). The Actions asserted claims under federal securities laws, ERISA, and state law and alleged, among other things, that Banc of America Capital Management, LLC and BACAP Distributors, LLC permitted Canary Capital to market-time certain Nations Funds during the class period and further alleged that Banc of America Securities LLC provided Canary Capital and three other “introducing brokers” access to a trading platform that allowed them to late-trade Nations Funds and other mutual funds.
The Canary Severed Settlement provides for a payment of $1,050,000 on behalf of the Canary Defendants (Canary Capital Partners, LLC; Canary Capital Partners, Ltd.; Canary Investment Management, LLC; and Edward Stern) to members of the Canary Class. Additionally, $2,100,000 paid in connection with a different settlement between the Canary Defendants and the Office of the New York State Attorney General will be distributed to members of the Canary Class.
Pursuant to the Nations Settlement, the parties agreed that the case would be resolved if at least $60 million was distributed to the Nations shareholders and/or the Nations Funds from the Bank of America Fair Fund. The Nations Settlement also provided for important corporate governance reforms. The amount ultimately allocated, $89.7 million, has already been largely distributed.
A copy of the full Notice of Pendency and Proposed Settlement of Class Action is available in "Important Case Documents."