Massachusetts Financial Services Co., John W. Ballen, and Kevin R. Parke

On February 5, 2004, the SEC instituted and settled administrative and cease-and-desist proceedings against Massachusetts Financial Services Co., John W. Ballen, and Kevin R. Parke for violating federal securities laws by allowing widespread market timing trading in certain MFS mutual funds in contravention of those funds’ public disclosures.  For more information on the SEC’s action, you can read In the Matter of Massachusetts Financial Services Co., John W. Ballen and Kevin R. Parke at IA-2213 (Feb. 5, 2004).

As required by the SEC’s Order, MFS paid $175 million in disgorgement and a $50 million civil penalty, and Ballen and Parke each paid a civil penalty of $250,000 and disgorged over $50,000.

On September 15, 2006, the SEC published a Notice of Proposed Distribution Plan and Opportunity for Comment in connection with this matter, including the proposed Distribution Plan.  On July 24, 2007, the SEC approved the modified distribution plan.

On November 20, 2007, the SEC announced the first in a series of distributions to affected MFS shareholders.  From the approximate $306 million for disbursement, the SEC distributed $31.5 million to more than 150,000 affected fund shareholders.  On December 6, 2007, the SEC directed the second disbursement of approximately $26 million.  Investors can obtain additional information about the distribution process, including a copy of the Distribution Plan, by visiting http://www.Rust-MFSSettlement.com or by calling the Administrator of the Distribution Plan at 1-866-216-0283.

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