Welcome to the Strong Mutual Fund
Market Timing Settlement Website
In late 2003 and early 2004, a number of investors in Strong Funds filed complaints in various courts against Strong Capital Management, Inc. and related entities, alleging market timing and late trading in the Strong Funds. Market timing is a term used to describe the short-term, "in and out" trading of mutual fund shares, which may be used to capitalize on inefficiencies in the way mutual fund shares are priced. Late trading is a form of market timing that involves placing orders to buy, sell or exchange mutual fund shares using the day's net asset value ("NAV") after the 4:00 p.m. eastern time cut-off, capitalizing on post-4:00 p.m. information. Over the same period, various other mutual fund families identified as being involved in the regulatory market timing and late trading investigations likewise were named in numerous complaints filed in courts throughout the United States. On February 20, 2004, the Judicial Panel on Multi-District Litigation issued an order centralizing all of these actions in one multi-district docket in the United States District Court for the District of Maryland (the "Court") under the caption MDL-1586 - In re Mutual Funds Investment Litigation (the "MDL Actions").
The Settlements, if approved, provide for dismissal, binding on all Class Members, of all claims against the Settling Defendants based upon frequent trading, market timing, or late trading, or the aftermath of those activities or their disclosure, in the Strong Funds, in exchange for settlement payments. The proposed Settlements provide for payment of a total of $13,678,500 in cash (the "Settlement Funds"), comprised of (i) $13,500,000 paid on behalf of the Strong Defendants, (ii) $15,500 paid on behalf of BAS, (iii) $28,000 paid on behalf of the Bear Stearns Defendants, and (iv) $135,000 paid on behalf of the Canary Defendants. You may have already received a copy of the Mailing Notice describing the proposed Settlements that the Court ordered to be mailed to class members. The Long-Form Notice explains in more detail the important facts and terms of the Settlements. Please be sure to review the Long-Form Notice to fully understand your rights with respect to the Settlements.
As described in the Notices, The Class consists of: (a) all Strong Fund shareholders at any time from January 1, 1999, through December 31, 2004, including, without limitation, investors in Strong Funds through nominee or omnibus accounts, and (b) all participants in or beneficiaries of the Strong Financial Corporation Profit Sharing and 401(k) Plan at any time from October 30, 1998 through December 31, 2004, except those persons and entities that are excluded.
Please also note the following important dates concerning the Settlements:
Deadline to Request Exclusion from the Investor Class: September 21, 2010
Deadline to Submit an Objection: September 21, 2010
Court Settlement Fairness Hearing: October 21 and 22, 2010
Deadline to Submit a Proof of Claim: December 8, 2010