Welcome to the Pilgrim Baxter
Mutual Fund Settlement Website

Starting on November 14, 2003, the first in a series of putative securities class action complaints was filed in the United States District Court for the Eastern District of Pennsylvania, alleging unlawful market-timing and late trading in the Pilgrim Baxter (PBHG) Funds and the communication of portfolio holdings information. Market-timing is a term used to describe the short-term, "in and out" trading of mutual fund shares, which may be used by a mutual fund trader to capitalize on inefficiencies in the way mutual fund shares are priced. Late trading is a form of market-timing that involves a mutual fund trader placing orders to buy, sell or exchange mutual fund shares using the prior day's price to capitalize on information obtained after the close of the market. On November 26, 2003, the first derivative action based on the same alleged market-timing and late trading practices was filed in the United States District Court for the Eastern District of Pennsylvania. On February 20, 2004, the Judicial Panel on Multi-District Litigation issued an order centralizing all of these actions in one multi-district docket in the United States District Court for the District of Maryland under the caption MDL-1586 - In re Mutual Funds Investment Litigation. In addition, a total of $5,730,000 obtained by the Office of the New York Attorney General in its settlement with the Canary defendants was allocated to the Settlement Class in the Pilgrim Baxter Sub-Track.

Plaintiffs reached Settlements that will resolve the claims asserted in the securities class and derivative actions pending in the Pilgrim Baxter Sub-Track of MDL - 1586. The Settlements provided for a total payment of $31,538,600 in cash plus interest, funded on behalf of five separate groups of defendants. In addition, a total of $5,730,000 obtained by the Office of the New York Attorney General in its settlement with the Canary defendants was allocated to the Settlement Class in the Pilgrim Baxter Sub-Track.

The Settlement Class in the Pilgrim Baxter Sub-Track includes all persons and entities who held, purchased or otherwise acquired shares in any of the Pilgrim Baxter (PBHG) Funds during the period from July 30, 1999 to November 13, 2003, inclusive, except those persons and entities that are excluded. You may view a list of the Pilgrim Baxter (PBHG) Funds here.

On October 25, 2010, the Court entered Orders approving the settlements and separate Orders granting attorneys' fees and litigation expenses. Therefore, claims that were asserted against the settling defendants and certain parties related to the settling defendants have been released. If you are interested in more information regarding the release of claims, please click on the "Releases" tab to the left.

On March 9, 2012, the Court entered the Order Approving Distribution Plan. Pursuant to this Order, the distribution of the settlement proceeds to eligible Authorized Claimants occurred on Thursday, April 12, 2012.