SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Third Avenue Management LLC ...
March 19 2016 - 8:00AM
Pomerantz LLP announces that a class action lawsuit has been filed
against Third Avenue Management LLC (the “Advisor”), Third Avenue
Trust (the “Trust”), and certain of their officers and
trustees. The class action, filed in United States
District Court, Central District of California, and docketed under
16-cv-00770, is on behalf of a class consisting of all persons or
entities who purchased securities of Third Avenue Focused Credit
Fund Investor Class shares (NASDAQ:TFCVX) and Third Avenue Focused
Credit Fund Institutional Class shares (NASDAQ:TFCIX) between March
1, 2013 and December 10, 2015 inclusive (the “Class Period”).
This class action seeks to recover damages against Defendants for
alleged violations of the federal securities laws under the
Securities Act of 1933 (the “Securities Act”).
If you are a shareholder who purchased TFCVX and
TFCIX securities during the Class Period, you have until March 29,
2016 to ask the Court to appoint you as Lead Plaintiff for the
class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert
S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or
888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail
are encouraged to include their mailing address, telephone number,
and number of shares purchase.
Third Avenue Trust is an open-end management
investment company that consists of different investment series,
including Third Avenue Focused Credit Fund (the “Fund”). The Trust
is organized under the laws of Delaware pursuant to a Trust
Instrument dated October 31, 1996. The Trust is headquartered at
622 Third Avenue, New York, New York 10017.
The Complaint alleges that the statements made by
the Defendants to the investing public in the registration
statements, prospectuses, and annual reports, and any sales or
promotional material for the Fund misrepresented or omitted
material facts about the investment objectives, assets, operations,
or management of the Fund. Specifically, the Fund's registration
statements and prospectus misled investors about its liquidity and
risk.
A key feature of open-end funds is that they allow
investors to redeem their shares daily. Funds therefore must
maintain assets that are sufficiently liquid to meet shareholder
redemptions. However, it appears that the Fund failed to account
for the illiquidity of its holdings given that the Fund's
management team invested heavily in illiquid bonds. The increasing
redemptions combined with the excessive illiquidity of the Fund's
remaining assets drove down the net asset value of the Fund and
threatened to force it to sell illiquid securities at fire sale
prices. Ultimately, the Fund became so highly concentrated in
illiquid securities that on December 9, 2015, Third Avenue
Management LLC announced that Defendants would suspend redemptions
in the Fund and put the Fund's remaining assets into a liquidating
trust, a highly unusual step taken without Securities and Exchange
Commission's approval.
The Pomerantz Firm, with offices in New York,
Chicago, Florida, and Los Angeles, is acknowledged as one of the
premier firms in the areas of corporate, securities, and antitrust
class litigation. Founded by the late Abraham L. Pomerantz, known
as the dean of the class action bar, the Pomerantz Firm pioneered
the field of securities class actions. Today, more than 70 years
later, the Pomerantz Firm continues in the tradition he
established, fighting for the rights of the victims of securities
fraud, breaches of fiduciary duty, and corporate misconduct. The
Firm has recovered numerous multimillion-dollar damages awards on
behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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