NEW YORK, Jan. 29, 2016 /PRNewswire/ -- Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the Central District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased either Institutional or Investor shares of the Third Avenue Focused Credit Fund(the "Fund") (NASDAQ: TFCIX) (NASDAQ: TFCVX) from March 1, 2013 through December 10, 2015 (the "Class Period"), pursuant or traceable to one of the Fund's registration statements or prospectuses. The complaint charges Third Avenue Management LLC and certain of its officers with violations of the Securities Act of 1933.
The complaint alleges that the prospectuses and registration statements of this fixed income mutual fund contained material false or misleading statements regarding the Fund's liquidity. A key feature of mutual funds is that they allow investors to redeem shares any day during which the exchange they are traded on is open. Mutual funds therefore must ensure they have enough liquid assets to meet shareholder redemptions.
According to the complaint, the Fund's prospectuses stated that the Fund would place no more than 15% of its assets in illiquid securities, securities that could not be sold promptly at or near its carrying value. An analysis of the Fund's holdings in 2013, 2014, and 2015 has revealed that the Fund consistently held more than 15% of its net assets in illiquid securities. The Fund's excessive illiquidity meant that it could not promptly sell assets to meet growing redemptions without unloading them at fire sale prices, leading it to suspend redemptions and shut down the Fund on December 10, 2015.
Plaintiffs seek to recover damages on behalf of all Class members who invested in the Fund during the Class Period. If you invested in the Third Avenue Focused Credit Fund as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 28, 2016.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an investor in the Third Avenue Focused Credit Fund and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or email@example.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs' firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Central District of California.
Bernstein Liebhard LLP 10 East 40th Street New York, New York 10016 (877) 779-1414 www.bernlieb.com
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SOURCE Bernstein Liebhard LLP