Investigation and pending class action against Janus Capital Group. Janus Capital Group owns and operates the Janus family of mutual funds.
This class action lawsuit alleges that Janus Capital Group engaged in a pattern and system of "market timing" and/or "late trading" in connection with Janus Capital Group's operation of the Janus funds. In the United States, mutual fund prices are set once daily at 4:00 p.m. Eastern time. Late trading occurs when traders are allowed to purchase fund shares after 4:00 p.m. at that day's closing price. Under law, most mutual fund trades received after 4:00 p.m. must be executed at the following day's closing price, but because some orders placed before 4:00 p.m. cannot be executed until after 4:00 p.m., brokers can collude with investors and submit post-4:00 p.m. trades as if they had been placed before 4:00 p.m. Such trades can be made with information about after-hours market developments. Market timing is an investment strategy in which an investor tries to profit from short-term market cycles by trading into and out of market sectors as they heat up and cool off. In many cases, funds bar or limit market timing because the practice may increase the cost of administering a mutual fund borne by all shareholders in the fund.
Market Timing and Late Trading cost the investors in the Janus funds millions of dollars.
Name (Stock Symbol)
Janus Capital Group Inc. (JNS)
Janus Capital Group Inc. provides investment management and administrative services to mutual funds, separate accounts and institutional clients in both domestic and international markets. JCG provides investment advisory services through its primary subsidiaries, Janus Capital Management LLC, INTECH Investment Management LLC and Perkins Investment Management LLC.
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