Janus Capital Management LLC

Latest Action: On August 15, 2008, the SEC announced a first distribution of more than $18 million to over 325,000 investors harmed by undisclosed market timing in certain mutual funds managed by Janus Capital Management. The SEC will ultimately return approximately $100 million to harmed investors through a series of distributions. Investors can obtain information about the distribution by contacting Rust Consulting, Inc., the Fair Fund Administrator, at 1-800-419-5292, and by visiting a website for Janus investors at Janus Capital Management LLC Settlement Fund.

Background: On August 18, 2004, the SEC instituted settled administrative and cease-and-desist proceedings against Janus Capital Management LLC. The SEC issued an Order finding that Janus violated the federal securities laws by improperly permitting market timing in some of its mutual funds to the detriment of long-term investors in those funds. As part of the settlement, Janus must pay $50 million in disgorgement and $50 million in a civil penalty for distribution to defrauded shareholders. For more information on the SEC’s action, you can read In the Matter of Janus Capital Management LLC at IA-2277 (Aug. 18, 2004).

Under the terms of the SEC's order, an Independent Distribution Consultant (IDC) submitted a distribution plan to the SEC. On April 25, 2008, the SEC approved the plan. You can read the SEC's Order Approving the Modified Plan of Distribution and the Modified Plan of Distribution.

http://www.sec.gov/divisions/enforce/claims/januscapital.htm