Four federal judges will hold the first hearing this week on nearly 100 private lawsuits against six mutual fund companies involving improper trades, The New York Times reports. The multi-jurisdictional hearing is taking place in Baltimore, as Maryland is a favored state of incorporation for mutual funds.
The judges first two concerns are setting a schedule and determining themes, or tracks, in the litigation against the six firms:
"This is now going to be sort of Ground Zero for the federal securities litigation involving the mutual fund fraud that has been in the news," commented Andrew Levy, a trial attorney and adjunct professor at the University of Maryland School of Law.