Siemion Huckabay

MICHIGAN INVESTOR PURSUES A SHAREHOLDERS' RIGHTS CLAIM AGAINST ALLIANCEBERNSTEIN HOLDINGS, ET AL., FOR IMPROPER TRADING TECHNIQUES

DETROIT, October 3, 2003
A shareholders' rights action has been filed by the law firm of Siemion Huckabay, et al. P.C. on behalf of an accredited investor and all persons or entities who purchased or otherwise acquired securities of the AllianceBernstein Technology Fund (Sym: ALTFX, ATEBX, ATECX), AllianceBernstein All-Asia Investment Fund (Sym: AALAX, AAABX, AAACX), and the securities of the AllianceBernstein family of funds (the "Funds") owned and operated by Alliance Capital Management Holding L.P., and its subsidiaries and other affiliates, between October 2, 1998 and September 29, 2003, inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934, the Securities Act of 1933 and the Investment Advisers Act of 1940. The Complaint was filed in the United States District Court for the Southern District of New York, case number 03-CV-7765.

The Complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933; Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; and Section 206 of the Investment Advisers Act of 1940. The Complaint charges that, throughout the Class Period, defendants failed to disclose that they improperly allowed certain hedge funds, such as Canary Capital, LLC, to engage in the "timing" of their transactions in the Funds' securities. Timing is excessive, arbitrage trading undertaken to turn a quick profit. Timing injures ordinary mutual fund investors -- who are not allowed to engage in such practices -- and is acknowledged as an improper practice by the Funds. In return for receiving extra fees from Canary and other favored investors, Alliance Capital Management and its subsidiaries allowed and facilitated Canary's timing activities, to the detriment of class members, who paid, dollar for dollar, for Canary's improper profits. These practices were undisclosed in the prospectuses of the Funds, which falsely represented that the Funds actively police against timing.

Interestingly, since news of the Office of the New York Attorney General taking action against Janus Capital Group, Inc., several other mutual funds have been subject of litigation, including Bank One's Group One Funds, Bank of America's Nations Funds, and Strong Funds. What is telling about this situation is that within days of this news becoming the spot light of CNBC news for an evening all the above listed mutual fund companies sent letters to their shareholders apologizing for their employees' behavior and are willing to reimburse investors for their losses caused by the improper trading techniques.

Interestingly, since news of the Office of the New York Attorney General taking action against the mutual fund industry, Alliance Capital Management, Bank of America's Nations Funds, Bank One's Group One Funds, Janus Capital Group, Inc., Prudential Securities, Putnam Investments, and Strong Funds, have been under investigation for improper trading techniques. What is telling about this situation is that within days of this news becoming the spotlight of CNBC news for an evening several of the above listed mutual fund companies sent letters to their shareholders apologizing for their employees' behavior and are retaining accounting firms to examine shareholders' losses caused by the improper trading techniques.

Established in 1981, Siemion Huckabay, et al., P.C. is a civil litigation law firm, based in metropolitan Detroit. If you wish to discuss the action, please contact plaintiff's counsel, Andrew J. Morganti by e-mail at amorganti@siemion-huckabay.com.