A lawsuit filed this past July alleging securities fraud against Investment Adviser's, Inc. (IAI) of Minneapolis is continuing to twist its way through the legal system. In the meantime, the fund which is the target of the suit has revealed that approximately 65 percent of its portfolio is illiquid.
This past December, the lawsuit, originally filed in federal district court in San Diego, Calif. on behalf of two shareholders of the IAI Value Fund, was commuted back to Minnesota. Two weeks ago the plaintiffs filed an opposition to IAI's recent motion to dismiss the case. The case, which could become a class action lawsuit, is still pending. The plaintiffs are being represented by Sullivan, Hill, Lewin, Rez & Engel of San Diego and the firm is seeking other investors who may feel harmed and would join in a class-action suit.