Alliance Capital Management, L.P.

Latest Action: Under the terms of the SEC's order, an Independent Distribution Consultant (IDC) submitted a distribution plan to the SEC. On May 15, 2008, the SEC approved the plan. You can read the SEC's Order Approving Distribution Plan, Appointing a Fund Administrator, and Waiving Bond as well as the IDC’s Final Plan of Distribution.

Background: On December 18, 2003, the SEC instituted administrative and cease-and-desist proceedings against Alliance Capital Management, L.P. The SEC alleged that the respondent, without disclosure to its mutual fund investors, improperly permitted market timing in some of its retail mutual funds to the detriment of long-term investors in those funds. As part of the settlement, Alliance Capital must pay at least $150 million in disgorgement of ill-gotten gains and $100 million in a civil penalty for distribution to defrauded shareholders. For more information on the SEC's action, you can read In the Matter of Alliance Capital Management, L.P. at IA-2205A (Dec. 18, 2003).

Under the terms of the SEC's order, an IDC must submit a Distribution Plan to the SEC to distribute the Fair Fund containing approximately $250 million to injured investors. On March 13, 2008, the SEC published Notice of Proposed Distribution Plan and Opportunity for Comment, which specifies how copies of the proposed Distribution Plan can be obtained, and describes the process by which persons may comment on the Plan. Those who wish to provide their comments on the proposed Distribution Plan must submit them, in writing, no later than April 14, 2008.

After publication and comment, the proposed Distribution Plan will be submitted to the SEC for approval. When the SEC approves the proposed Distribution Plan, with modifications as appropriate, distributions will begin.

http://www.sec.gov/divisions/enforce/claims/alliance.htm