Minnesota U.S. District Court Judge Paul Magnuson has decided to expedite Ameriprise Financials lawsuit against Reserve Funds Primary Fund. The court will fast-track the discovery of documents and other supporting information.
Ameriprise filed its complaint against the fund on Friday, three days after the money market mutual fund broke the buck. The suit, the third to date to be filed against the Primary Fund, accuses the investment advisor of tipping off certain investors to the problem before publicly announcing it.
Ameriprise attorney Robert Skinner told Reuters that the brokerage firm is anxious for the opportunity to shed some light on the illegal tipping that we believe occurred, to ensure that the small shareholders and the large institutional shareholders get equal treatment when the fund is distributed.
But some legal experts say that because money market mutual funds do not guarantee that their net asset value will remain at $1 per share, investors may have a hard time making a legal case.