PBHG Lawsuits Update
The Securities and Exchange Commission (SEC) has reached a $250 million settlement with Pilgrim, Baxter, and Associates Ltd.; Gary Pilgrim; and Harold Baxter regarding improper trading activities. These managers were accused of allowing certain large investors in their funds to actively trade in the funds contrary to the fund’s policies and to the detriment of other investors.
The Program has received notification from the SEC that approximately $1.7 million of this settlement will apply to Program participants who were invested in the PBHG Growth fund between June 1, 1998 and December 31, 2001. The Program is in the process of selecting a firm to administer the settlement process.
Details about the settlement are still being finalized. As more information becomes available, the Program web site, www.ohio457.org, will have more details, including a toll-free help line.
To learn more about the SEC settlement, please see the following web sites:
http://www.omfunds.com/inside/regulatoryUpdates.asp
http://www.omfunds.com/inside/Settlement_QA.pdf
http://www.pbafairfundsettlements.com/start.asp
The web sites include frequently asked questions and answers about the settlement and the distribution process. The separate but related class-action lawsuit in which the Program was granted lead plaintiff status in 2004 is still being pursued against the Pilgrim Baxter family of funds and related parties. An additional distribution process could take place at the conclusion of that class-action lawsuit, if the suit is successful, or if a settlement is reached.
Please look for further updates in upcoming newsletters and on the Program web site.