In an interesting twist, the law firm Korein Tillery has sued Janus and Putnam seeking restitution for damages to investors caused by managers for failing to use fair value to set fund share prices.
Fox News reports that the company, best known for winning a $10.1 billion dollar verdict against Phillip Morris, claims that if managers employed fair value, market timing would have never occured at the fund firms.
So far, 20 plantiffs have signed on to the case filed earlier this week in Illinois. Korein Tillery plans to seek class action status and damages of more than $50,000 per plaintiff or class member, but not more than $75,000.
George A. Zelcs, a lawyer with the firm, said mutual funds have the means to apply fair value to their assets and their failure to do so amounts to negligence of their fiduciary duties.
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