Alliance Capital Settles Suit by Waiving Fees
Bond-fund investors who lost money in peso crisis will benefit.
San Diego lawyer James Krause, who sued Alliance Capital Management five years ago on behalf of shareholders who felt they were misled about the strategies of one of its bond funds, has settled the class action for a load waiver.
The waiver will affect investors who held shares of Alliance North American Government Income (ANAGX) when the fund plunged during the Mexican peso crisis of 1994. Alliance Capital will let them invest up to $250 million collectively in any members of its fund family without having to pay initial sales charges.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.