Shareholders Sue Reserve Primary Fund

September 18, 2008 RSS Feed Print
  • Comment (154)

Shareholders of the Reserve Primary Fund who did not bail before the company froze redemptions earlier this week are suing. The lawsuit, filed Wednesday, seeks damages for investors who didn't redeem their shares of the money-market fund as of September 16, Bloomberg reports. According to the lawsuit (via Bloomberg), the fund "deviated from its stated investment objective by sacrificing preservation of capital and liquidity in pursuit of higher yields. This strategy was exemplified by the fund's disastrous and unreasonable concentration of $785 million face value in commercial paper issued by Lehman."

The Reserve Primary "broke the buck" Tuesday when its shares fell below $1. Once the fund crossed that threshold, its adviser halted redemptions as a flood of investors bolted, further exacerbating the fund's decline.

As of last Friday, the fund held $62.6 billion in assets, including $785 million in bonds issued by Lehman Brothers. The fund held about $23 billion in assets on Tuesday.

Tags:
Lehman Brothers,
bonds,
stocks,
Wall Street,
stock market

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Are there any lawsuits vs TDA for their ilegal selling of RYPQX as a moneny market?

Ed Orange

ed orange of MA 8:03PM July 07, 2009

I lost money I had saved... I was told it was safe.. I asked about FDIC and I was told it was safer.

Paul D of FL 3:14PM March 25, 2009

When TD Waterhouse and Ameritrade merged. TD Ameritrade took the money I had in a money market account and moved it to a non interest bearing account without my knowledge. I didn't realize this until I received my quarterly statement. That is 3 months without interest. When I called them and asked them to put the money that was in a money market account back into a money market account they told me that RYPQX is where I should put my money. I explained that I live pay check to pay check and need to make sure that the money is safe and easily accessible. I asked for documentation on this account and they swore up and down that this was like a money market account. And that there was no documentation since this is a new account. I needed to understand this better, since I am a very conservative person with very little money. I was assured that it was the new money market account since they merged. You have my life savings and you can't even provide me with my tax documentation in a timely manner. I require my tax refund to pay my property tax. Shame on you TD Ameritrade. And now I found out that I will not recive any interest on the money that is on hold in the RYPQX if I am even lucky to ever see it. Shame on you TD Ameritrade. You are honestly the worst company in the world. I WANT IN ON THE LAWSUITE.

JLG of CA 11:22PM February 08, 2009

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