Reserve Files Motion to Dismiss
Reserve Management Company, Inc., et al. Files a Motion to Dismiss says a release put out Tuesday night. It reads, "On June 11, 2009, Reserve Management Company, Inc., Resrv Partners, Inc., Bruce Bent Sr. and Bruce Bent II filed a Motion to Dismiss the civil action brought by the SEC in the United States District Court for the Southern District of New York (SEC v. Reserve Management Company, Inc., et al.; No. 09-CV-4346). The Motion and the Memorandum of Law supporting the Motion, set forth the reasons as to why the Motion to Dismiss should be granted. (Click here to view a copy of these pleadings.) Reserve Management Company, Inc. and the other defendants are cooperating fully with the SEC's staff regarding this matter, but, at the same time, are vigorously defending themselves in this action." See also: SEC releases "Information for Investors in the Reserve Primary Fund". The posting says, "The Securities and Exchange Commission today [June 15] posted information on its Web site for investors in the Reserve Primary Fund, which 'broke the buck' last September when its net asset value fell below $1 per share. Since then, the fund has withheld a significant amount of money from investors pending the outcome of numerous lawsuits filed against the fund, its trustees, and other officers and directors of Reserve entities. The SEC filed suit on May 5, 2009, seeking, among other things, an order to distribute the fund's remaining assets to investors expeditiously on a pro rata basis. On June 8, 2009, the Honorable Paul G. Gardephe of the U.S. District Court for the Southern District of New York issued an order that sets a schedule for its consideration of the SEC's proposed plan of distribution. Under the court order, all interested parties can file objections to the proposed distribution plan by July 22, 2009. The court will hold a hearing to consider the proposed plan of distribution on Sept. 23, 2009. Pursuant to the court order, the SEC is directing investors to additional information on its Web site, including the SEC's proposed distribution plan as well as the SEC's evidence in its case against the operators of the Primary Fund. The information is available at the following link: www.sec.gov/spotlight/reserve_primary_fund_investors.htm. Investors also can find additional information on the Reserve's Web site at: www.ther.com."
