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RS Investments Management, Inc. et al.
Distribution Status
On April 25, 2008, the SEC announced the distribution of approximately $30.6 million to more than 250,000
investors who were harmed by undisclosed market timing in the RS Investments mutual funds.
Investors can obtain information about the distribution by visiting the RS Investments Settlement Website or by calling Boston Financial Data Services, Inc., the Fund Administrator, at (866) 700-0119.
Litigation and Plan of Distribution
On October 4, 2004, the SEC instituted settled administrative and cease-and-desist proceedings against RS Investment Management,
Inc. and RS Investment Management, LLC. The SEC’s Order found that RS allowed rapid in-and-out trading, known as market timing,
in at least one mutual fund it managed, contrary to the information in the prospectus. As part of the settlement,
RS is required to pay $11.5 million in disgorgement of ill-gotten gains and a $13.5 million civil penalty,
for a total of $25 million. For more information on the SEC's action, you can read In the Matter of RS Investment
Management, Inc., et al., at IA-2310 (Oct. 6, 2004).
Under the terms of the SEC's Order, an Independent Distribution Consultant submitted a distribution plan to the SEC for the
distribution of the Fair Fund containing $25 million to investors. On May 14, 2007, the SEC posted notice of the
proposed distribution plan. On August 8, 2007, the SEC approved the plan. You can read the SEC’s Order
Approving Modified Distribution Plan.
http://www.sec.gov/divisions/enforce/claims/rsinvestments.htm
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