To err is human, to forgive divine. But when errors occur in mutual fund net asset values, they can be problematic and a source of frustration.

In recent years, both Heartland Funds of Milwaukee and Van Waggoner Funds of San Francisco have run into serious trouble over alleged mispricing of their funds' securities, which eventually led to huge downward repricings of the funds' net asset values (NAVs) and shareholder lawsuits. In 1999, Investment Advisors, Inc. of Minneapolis found itself embroiled in a lawsuit because of questionable valuations related to two privately held securities in one of its funds.

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