On September 16, 2008, it was announced that Reserve Primary Fund (RFIXX), one of the largest money market mutual funds, put a seven-day freeze on investor redemptions after the net asset value of its shares “broke the buck,” falling below $1. The fund is owned by Reserve Management Corporation and held approximately $785 million in Lehman Brothers commercial paper and medium-term notes, which was revalued as worthless by the fund’s board on Tuesday, following Lehman’s bankruptcy filing.
According to recent news articles, as of Friday, September 12, 2008, the fund had approximately $62.6 billion in assets and by late Tuesday afternoon, the fund had taken a $40 billion hit, falling to approximately $23 billion in assets. The loss of assets combined with the revaluing of Lehman Brothers holdings sent the net asset value of the fund shares down to 97 cents on Tuesday, only the second time in history that a money market fund’s net asset value dipped below $1.
On September 19, 2008, our attorneys filed a class action lawsuit on behalf of all persons and entities who purchased or reinvested in any class of shares of the Reserve Primary Fund (“Primary Fund”), between September 28, 2007, and September 16, 2008, inclusive.
Questions? Speak with a Securities Lawyer
If you wish to discuss your rights as an investor in Primary Fund or would like to learn more about our class action lawsuit, please contact one of our securities lawyers by filling out the form on the right or calling (866) 981-4800.