Hagens Berman Sobol Shapiro Investigations

TD Ameritrade | Reserve

Date Started: November 26, 2008

Hagens Berman Sobol Shapiro announced on November 26, 2008, it is investigating the practices of TD Ameritrade and the Reserve in marketing and selling the Reserve's Yield Plus Fund (NASDAQ: RYPQX) based on claims the companies may have violated securities laws and obligations to its investors.

Hagens Berman is investigating filing a class-action lawsuit on behalf of investors, as well as the possibility of petitioning the court for injunctive relief, ordering the fund to return investments currently frozen by the fund.

In July 2007, the Reserve Short-Term Trust filed a registration statement with the SEC including a prospectus and statement of additional information. The filing emphasized the fund's focus - to seek as high a level of current income as is consistent with the preservation of capital and liquidity. Reportedly, the fund was heavily marketed and sold by TD Ameritrade and the Reserve as a money market fund, or as having the same characteristics as a money market fund.

For example, the fund issued reports characterizing itself as an enhanced cash fund, focusing on the safety of principal and liquidity, and as having a target of maintaining a NAV of $1.00 per share. Hagens Berman is investigating the marketing and sales tactics of the fund, and whether, the Reserve, TD Ameritrade and other officers made false statements to investors in an effort to sell funds and continue holding those already purchased.

In September 2008, news came that the fund had 'broken the buck' and stopped all redemptions. The true value of the shares is no longer being reported. While it holds in excess of $500 million in cash, it is no longer making redemptions to investors who need their cash.

The investigation includes reviewing alleged misstatements made in by the Reserve and TD Ameritrade.

If you or your group invested in the Reserve's Yield Plus Fund or if you have information you believe may help the investigation please contact plaintiff's counsel Reed Kathrein at reed@hbsslaw.com or (510) 725-3000.

You may also join this investigation by clicking "Join Investigation."