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U.S. Securities and Exchange Commission

Alliance Capital Management, L.P.

Latest Action: On February 11, 2009, the SEC directed the disbursement of approximately $79 million to investors in some of Alliance Capital Management’s mutual funds who had been harmed by alleged improper market timing. This is the second in a series of disbursements from the Fair Fund that will distribute a total of approximately $321 million. Investors can obtain additional information by visiting the Alliance Fair Fund Settlement website or by calling the Fund Administrator at (888) 222-8536.

Background: 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 IDCís Final Plan of Distribution.

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).


Modified: 03/16/2009