Board of Trustees of Eaton Vance Closed-End Funds Rejects Demands

Dec 23, 2010, 15:06 ET from Eaton Vance Management

BOSTON, Dec. 23, 2010 /PRNewswire/ -- Eaton Vance Management, a wholly-owned subsidiary of Eaton Vance Corp. (NYSE: EV), announced today that the Board of Trustees of two closed-end management investment companies that it advises, Eaton Vance California Municipal Bond Fund (NYSE Amex: EVM) and Eaton Vance New York Municipal Bond Fund (NYSE Amex: ENX) (collectively, the "Trusts"), has rejected the demands contained in letters received from a law firm on behalf of putative common shareholders of the Trusts.  The ENX demand letter was received in September and the EVM demand letter was received in October 2010.  Each letter alleges that Eaton Vance Management and the Trustees and officers of the Trusts breached their fiduciary duties in connection with the Trusts' redemptions of their auction preferred securities ("APS") following the collapse of auction markets in February 2008. The letters demanded that the Board of Trustees of each Trust take certain actions to remedy the alleged breaches. Following a thorough investigation conducted by the independent Trustees of the Trusts, the Board of Trustees of each Trust (including all of the independent Trustees) rejected the demands set forth in the demand letters.

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SOURCE Eaton Vance Management