UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
ARTHUR SYLVESTER, Individually and on j
Behalf of all Others Similarly Situated, ) CASE NO.
Plaintiff, i ) CLASS ACTION COMPLAINT
VS. >
JANUS CAPITAL GROUP INC., JANUS ), JURY TRIAL DEMANDED
MERCURY FUND, JANUS HIGH-YIELD FUND, )
JANUS CAPITAL CORPORATION, JANUS
CAPITAL MANAGEMENT, LLC, JANUS i
INVESTMENT FUND, EDWARD 3. STERN, )
CANARY CAPITAL PARTNERS, LLC, 1
CANARY INVESTMENT MANAGEMENT, LLC,)
CANARY CAPITAL PARTNERS, LTD., DOES 1 )
THROUGH 100
,'
Defendants.
;
Plaintiff, by his attorneys, as and for his complaint, alleges the following
knowledge as to himself and his acts, and as to all other matters upon information and
following:
NATURE OF THE ACTION
1. This is a class action on behalf of a class (the "Class") of all
and holders of the mutual fund shares that are the subject of this lawsuit who held,
otherwise acquired shares of the Janus Mutual Funds between April 1,2002 and July 3,2003
"Class Period"), seeking to pursue remedies under the Investment Company Act of 1940
"Investment Company Act") and for common law breach of fiduciary duties,
JURISDICTION AND VENUE
2. The claims asserted herein arise under and pursuant to 5 36 of the
Company Act [15 U.S.C. 5 80a-351.
3. This Court has jurisdiction over the subject matter of this action
SNIPPETS:
Plaintiff, by his attorneys, as and for his complaint, alleges the following upon personal
This is a class action on behalf of a class of all purchasers, redeemers
otherwise acquired shares of the Janus Mutual Funds between April 1,2002 and July 3,2003 (the
seeking to pursue remedies under the Investment Company Act of 1940 (the
"Investment Company Act") and for common law breach of fiduciary duties,
the Janus Defendants, as hereinafter defined.
Defendant Janus Mercury Fund is a mutual fund regulated by
According to its prospectus, Janus High-Yield seeks to obtain high current income with a
Janus Capital Management, LLC managed and advised the Janus Mutual
is, and was at all relevant times, the Managing Principal of defendants Canary Capital
and existing under the laws of the State of New Jersey, with offices at 400 Plaza Drive,
Plaintiff, who sues said defendants by such fictitious names.
redeemers and holders of the mutual fund shares that are the subject of this lawsuit who
While the exact number of Class members is unknown to Plaintiff at this time
Whether the federal securities laws were violated by Defendants' acts as alleged
Whether Defendants breached their fiduciary duties by engaging in the activity
duties to investors by, among other things, engaging in a fraudulent scheme that benetitted
investors to engage in "timing" of the Janus Mutual Funds.
necessarily reflect the "fair value" of such securities as of the time the NAV is calculated.
short-term arbitrage repeatedly in a single mutual fund is called "timing" the fund.
Canary and other favored investors -- were easy for Janus Mutual Funds' managers to spot,
The portfolio managers who make the investment decisions for the
Canary employees regularly worked into the evening.
that the timing activity is disguised by the transactions of legitimate investors.
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