UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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MARION FINKEL, ::
Plaintiff, ::
-against- : 96 Civ.
:
PUTNAM CONVERTIBLE OPPORTUNITIES :
AND INCOME TRUST, GEORGE PUTNAM, : CLASS ACTION
WILLIAM F. POUNDS, JOHN D. HUGHES, : COMPLAINT FOR
PAUL G. BUCUVALES, JAMESON A. : VIOLATIONS OF
BAXTER, HANS H. ESTIN, JOHN A. HILL, : FEDERAL SECURITIES
ELIZABETH T. KENNAN, LAWRENCE J. : LAW
LASSER, ROBERT E. PATTERSON, DONALD :
S. PERKINS, GEORGE PUTNAM, III, ELI :
SHAPIRO, A.J.C. SMITH, W. NICHOLAS :
THORNDIKE, SMITH BARNEY INC., DAIN : Plaintiff Demands a
BOSWORTH INCORPORATED, GRUNTAL & : Trial by Jury
CO., INC., THE ROBINSON-HUMPHREY :
COMPANY, INC., A.G. EDWARDS & SONS, :
INC., FAHNESTOCK& CO., INC., KEMPER :
SECURITIES, INC., ADVEST, INC., FIRST OF :
MICHIGAN CORPORATION, LEGG MASON :
WOOD WALKER INCORPORATED, SUTRO & :
CO. INCORPORATED, ::
Defendants. :
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NATURE OF THE ACTION
1. This class action asserts claims under section 11 of
the Securities Act of 1933 and the common law on behalf of
purchasers of shares of the common stock of a closed-end fund, the
Putnam Convertible Opportunities and income Trust (the "Fund"),
that were issued in an initial public offering of 3,700,000 shares
of common stock at $25.00 per share ($92,500,000), including over-
SNIPPETS:
purchasers of shares of the common stock of a closed-end fund,
prospectus was a part,
The claims herein are asserted against the Fund,
(individually and as a defendant class)
1996, the Fund's shares, which trade on the New York Stock Exchange
, closed at $22 3/4, a discount of nearly 15% of the Fund's
has been no consideration of a share repurchase program nor a vote
violation of section 11 of the Securities Act of 1933.
the Registration Statement (which included the
shares traded at a significant discount to their net asset value
for an extended period of time, Putnam Investment Management, Inc.
would consider putting to a shareholder vote whether to convert the
Fund to an open-end investment company (which would enable
shareholders to redeem their shares on demand at the shares' net
representations that Putnam would consider a repurchase program
and/or the Fund would put conversion to an open-end fund to a vote
the shares of the Fund trade at a significant discount to their net
the Prospectus was false and misleading
--a market price reflecting a substantial discount from book
of the IPO to the present;
saddled with--exposes an investor in the closed-end fund--here, members of the Class--to loss.
These discount elimination procedures represented a
of this action pursuant to section 22 of the Securities Act,
Income Trust, referred to herein as the "Fund," is a Massachusetts
underwriters of the IPO, who are acting as representatives of all
PLAINTIFF'S PLAINTIFF CLASS AND SUBCLASS ALLEGATIONS
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