US Company Sued
for Alleged Online Gambling Investments
 Sept
5 - US mutual fund company American Century Companies
Inc, is being sued by one of its shareholders, Laura Seidl, for
allegedly investing in online gambling companies despite the
fact that the US government banned online gambling in October of
2006.
Based in Kansas City, American Century Companies Inc is
being sued for allegedly investing in a variety of online
gambling stocks which - due to the federal ban - resulted in
shareholders losing money on the their stocks in the American
Century Ultra Fund.
According to New York-based lawyer Thomas Sheridan, who has been
retained by Seidl, a New York resident and American Century
Ultra Fund investor, one of the online gambling stocks in
question was PartyGaming, which owns and operates
PartyPoker.com.
Said Sheridan, 'Our lawsuit is based on a complaint that alleges
that American Century Companies Inc encouraged American Century
Ultra Fund to invest in a multitude of illegal online gambling
companies - including PartyGaming - whose stocks plummeted once
the ban was passed.
'This caused the mutual funds to lose money which in turn
resulted in the investors losing money. It's still unclear as to
how many members are part of the class that is suing American
Century Companies, but it could include anyone who acquired
shares in the American Century Ultra Fund prior to July 17th,
2006,' he said.
In response, American Century Companies spokesman Chris Doyle
dismissed the suit's claims as 'without merit' and that 'the
company would vigorously defend itself.' The derivative suit was
filed on August 28th in the US District Court for the North
District of California.
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