Strong Capital Management, et al.

Latest Action: On September 14, 2009, the SEC approved the distribution plan and appointed PNC Financial Services Group (PNCGIS) as Fund Administrator. As part of the plan, PNCGIS will develop a shareholder database from the transfer agent’s records identifying all shareholders of Strong mutual funds. The plan further provides that PNCGIS will run shareholders’ names through the National Change of Address Database in an effort to ensure that shareholders’ current addresses are used for the distribution. We will update this web page to include PNCGIS's customer support contact information.

Background: On May 20, 2004, the SEC instituted and settled administrative and cease-and-desist proceedings against Strong Capital Management, Inc., Richard Strong, and other entities and individuals. Among other things, the SEC alleged that Strong, entities he controlled, or others improperly: allowed and failed to disclose market timing in the Strong Fund complex; released confidential portfolio holdings; made misleading prospectus disclosures; and in Strong’s case, market-timed his own funds. As part of the settlement, the respondents were ordered to pay a total of more than $140 million in disgorgement of ill-gotten gains and civil penalties for distribution to defrauded shareholders.

Under the terms of the SEC's order, an independent distribution consultant (IDC) retained by Strong Capital Management submitted a plan to the SEC to distribute the Fair Fund containing $140,750,000 million, plus accumulated interest, to injured shareholders. On July 30, 2009, the SEC published a Notice of Proposed Distribution Plan and Opportunity for Comment in connection with this matter.

For more information on the SEC's action, you can read In the Matter of Strong Capital Management, Inc., Strong Investor Services, Inc., Strong Investments, Inc., Richard S. Strong, Thomas A. Hooker, Jr. and Anthony J. D'Amato at IA-2239 (May 20, 2004).

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