AMERICAN CENTURY ULTRA FUND

Summary of Case: A securities class action has been filed against American Century Mutual Funds d/b/a American Century Ultra Fund on behalf of investors in the American Century Ultra Fund (the "Ultra Fund") who first purchased their shares in the Ultra Fund before July 17, 2006 and still held shares after July 17, 2006.

The complaint alleges that the Ultra Fund illegally invested, repeatedly and over a significant period of time, in an entity or entities whose primary business constituted illegal gambling under both federal law and the law of one or more of the United States. The market value of these investments plummeted when law enforcement officials began arresting principals of, and otherwise targeting for prosecution such illegal gambling businesses. That, in turn, resulted in injury to investors like plaintiff who had invested in the Ultra Fund, because the value of their investments in the Ultra Fund is based on the net asset value of the Ultra Fund.   Plaintiff assert claims under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-68 ("RICO"), as well as common law claims for breach of fiduciary duty and negligence.   Defendants, each of whom is a person or entity employed by or associated with the Ultra Fund, conducted the affairs of the fund through a pattern of racketeering. Specifically, each of the defendants knowingly developed and implemented (or conspired to develop and implement) an investment strategy pursuant to which the Ultra Fund was caused repeatedly and over a significant period of time to purchase shares in an "illegal gambling business" as the term used in 18 U.S.C. §. 1955, which makes it a felony to "own all or part of an illegal gambling business." By causing the Ultra Fund to purchase stock in an illegal gambling business, defendants caused the fund to become an owner of an illegal gambling business and thereby to violate 18 U.S.C. §. 1955.