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CASES

PIMCO Mutual Funds (2009)

Class Period: May 22, 2007 to Dec 1, 2008

Lead Plaintiff Deadline: Jan 1, 2009 + Deadline passed

Summary of Case:

A securities class action has been filed against Pimco Mutual Funds on behalf of all persons or entities who purchased or otherwise acquired the common shares of certain mutual funds offered by Allianz Global Investors Fund Management LLC ("Allianz Global"), including the common shares of the PIMCO California Municipal Income Fund II (the "PCK Fund"), PIMCO Municipal Income Fund II (the "PML Fund"), PIMCO Municipal Income Fund III (the "PMX Fund"), PIMCO New York Municipal Income Fund III (the "PYN Fund") and PIMCO California Municipal Income Fund III (the "PZC Fund") (collectively, the "Funds") between May 22, 2007 and December 1, 2008 for the PCK and PML Funds, inclusive (the "PIMCO II Class Period") and between June 6, 2007 and December 1, 2008 for the PMX, PYN and PZC Funds, inclusive (the "PIMCO III Class Period").

The complaint alleges that large portions of the Funds' portfolios were invested in the municipal bond market. Investors were not informed of the level of risk associated with the Funds' exposure to auction rate securities and the attendant Funds' liquidity risk. Investors were further not informed that the Funds lacked adequate internal controls to ensure that the Funds would remain in compliance with their restrictions and limitations related to their investment portfolios and strategies and to ensure that the Funds maintained proper leveraging practices to minimize the risks associated with the Funds' portfolios.

During the PIMCO II Class Period and/or PIMCO III Class Period, defendants issued materially false and misleading statements regarding the Funds' portfolios and risks. As a result of defendants' false statements, the Funds' shares traded at artificially inflated prices during the PIMCO II Class Period and/or PIMCO III Class Period.

The true facts, which were known by the defendants but concealed from the investing public during the PIMCO II Class Period and/or PIMCO III Class Period, were as follows: (a) The Funds lacked effective controls and hedges to minimize the risk of loss and risk of liquidity from auction rate securities ("ARS") which affected a large part of their portfolios; (b) The Funds lacked effective internal controls to ensure that the Funds would remain in compliance with restrictions and limitations related to their investment portfolios and strategies; (c) The extent of the Funds' liquidity risk due to the illiquid nature of a large portion of the Funds' portfolios, including ARS, was omitted; and (d) The extent of the Funds' risk exposure to ARS was misstated.

If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.