Investigation and pending class action against Alliance Capital. Alliance Capital owns and operates the AllianceBernstein family of funds. This class action lawsuit alleges that Alliance Capita engaged in a pattern and system of "market timing" and/or "late trading" in connection with Alliance Capital's operation of the AllianceBernstein 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 Bank One funds hundreds of millions of dollars.
Name (Stock Symbol)
Alliance Capital Management Holdings
Alliance Capital Management Holdings has changed its name to AllianceBernstein Holdings L.P. AllianceBernstein is a investment management firm with $395 billion dollars under management. AXA Financial owns a majority interest in AllianceBernstein. AXA Financial is a wholly owned subsidiary of AXA, one of the largest global financial services organizations.
AllianceBernstein is a investment management firm with $395 billion dollars under management. AXA Financial owns a majority interest in AllianceBernstein. AXA Financial is a wholly owned subsidiary of AXA, one of the largest global financial services organizations.
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.