BlackRock Advisors, LLC Provides Statement on Closed-End Fund Lawsuits
July 29 2010 - 8:45PM
Business Wire
BlackRock Advisors, LLC announced today that on July 27, 2010, a
shareholder derivative complaint was filed in the Supreme Court of
the State of New York, New York County with respect to the 11
closed-end funds listed below (the “Funds”), each of which had
previously received a demand letter from the same law firm on
behalf of the Funds’ common shareholders. The complaint was filed
against BlackRock, Inc., BlackRock Advisors, LLC, the Funds and
certain of the directors, officers and portfolio managers of the
Funds (collectively, the “BlackRock Parties”) in connection with
the redemption of auction-market preferred shares, auction rate
preferred securities, auction preferred shares and auction rate
securities (collectively, “AMPS”). The complaint alleges, among
other things, that the BlackRock Parties breached their fiduciary
duties to the common shareholders of the Funds (the “Shareholders”)
by redeeming AMPS at their liquidation preference and alleges that
such redemptions caused losses to the Shareholders. The plaintiffs
are seeking monetary damages for the alleged losses suffered and to
enjoin the Funds from future redemptions of AMPS at their
liquidation preference.
The Funds named in the lawsuit are as follows:
Fund Name
Ticker
BlackRock California Municipal Income Trust BFZ BlackRock Credit
Allocation Income Trust II, Inc. PSY BlackRock Credit Allocation
Income Trust IV, Inc. BTZ BlackRock Insured Municipal Income
Investment Trust BAF BlackRock Insured Municipal Income Trust BYM
BlackRock Municipal Bond Investment Trust BIE BlackRock Municipal
Income Trust BFK BlackRock New Jersey Municipal Income Trust BNJ
BlackRock New York Insured Municipal Income Trust BSE BlackRock New
York Municipal Bond Trust BQH The BlackRock Strategic Municipal
Trust BSD
The BlackRock Parties believe that the claims asserted in the
complaint are without merit and intend to vigorously defend
themselves in the litigation.
About BlackRock
BlackRock is a leader in investment management, risk management
and advisory services for institutional and retail clients
worldwide. At June 30, 2010, BlackRock’s AUM was $3.151 trillion.
BlackRock offers products that span the risk spectrum to meet
clients’ needs, including active, enhanced and index strategies
across markets and asset classes. Products are offered in a variety
of structures including separate accounts, mutual funds, iShares®
(exchange traded funds), and other pooled investment vehicles.
BlackRock also offers risk management, advisory and enterprise
investment system services to a broad base of institutional
investors through BlackRock Solutions®. Headquartered in New York
City, as of June 30, 2010, the firm has approximately 8,500
employees in 24 countries and a major presence in key global
markets, including North and South America, Europe, Asia, Australia
and the Middle East and Africa. For additional information, please
visit the Company’s website at www.blackrock.com.
Forward-Looking Statements
This press release, and other statements that BlackRock may
make, may contain certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act, with
respect to the future financial or business performance, strategies
or expectations. Forward-looking statements are typically
identified by words or phrases such as “trend,” “potential,”
opportunity,” “pipeline,” “believe,” “comfortable,” “expect,”
“anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,”
“seek,” “achieve,” and similar expressions, or future or
conditional verbs such as “will,” “would,” “should,” “could,” “may”
or similar expressions.
BlackRock cautions that forward-looking statements are subject
to numerous assumptions, risks and uncertainties, which change over
time. Forward-looking statements speak only as of the date they are
made, and BlackRock assumes a duty to or undertakes to update
forward-looking statements. Actual results could differ materially
from those anticipated in forward-looking statements and future
results could differ materially from historical performance.
The following factors, among others, could cause actual events
to differ materially from forward-looking statements or historical
performance: (1) changes in political, economic or industry
conditions, the interest rate environment or financial and capital
markets, which could result in changes in the Fund’s net asset
value; (2) the performance of the Fund’s investments; (3) the
impact of increased competition; (4) the extent and timing of any
distributions or share repurchases; (5) the impact of legislative
and regulatory actions and reforms and regulatory, supervisory or
enforcement actions of government agencies relating to the Fund or
BlackRock, as applicable; and (6) BlackRock’s ability to attract
and retain highly talented professionals.
The Annual and Semi-Annual Reports and other regulatory filings
of the Funds with the Securities and Exchange Commission (“SEC”)
are accessible on the SEC’s web site at www.sec.gov and on
BlackRock’s web site at www.blackrock.com, and may discuss
these or other factors that affect the Funds. The information
contained on our web site is not a part of this press release.
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