Welcome to the AEFA Securities Litigation Settlement Website

IMPORTANT UPDATE: All appeals regarding the Court's approval of the Settlement have been resolved. Settlement benefits will be distributed to eligible Class Members who filed timely and valid Claim Forms by July 10, 2007.

Overview

Statement of Plaintiff Recovery

Under the terms of the settlement, Defendants have established a cash settlement fund of $100 million, which is accruing interest. Reasonable costs associated with giving notice to the class and administering the settlement will not be deducted from the settlement fund, but will instead be paid separately by Defendants. After deduction of any attorneys’ fees and costs as awarded by the Court, the parties will distribute the entire settlement fund, together with interest, to class members in accordance with the Plan of Allocation. The parties estimate that approximately 2,450,000 persons are eligible to claim a share of the settlement fund. If you purchased an AXP Fund from March 10, 1999 through and including April 1, 2006 (the "Class Period") your minimum recovery will be $20, subject to proration. If you purchased a Preferred Fund during the Class Period your minimum recovery will be $50, subject to certain contingencies described in the Plan of Allocation attached to the Notice. If you purchased an American Express financial plan or other financial advice during the Class Period, you may be entitled to additional settlement compensation. Your recovery will depend on the total number of claims actually submitted by class members, the value of those claims under the Plan of Allocation, and other considerations.

Statement of Outcome of Case

The parties disagreed on both liability and damages and did not agree on the average amount of damages per class member that would be recoverable if Plaintiffs were to have prevailed at trial. Defendants denied that they are liable to Plaintiffs or the class and denied that Plaintiffs or the class members have suffered any damages.

Statement of Attorneys’ Fees and Costs Sought

Plaintiffs’ counsel submitted an application for an award of attorneys’ fees and for reimbursement of expenses incurred in connection with the prosecution of this litigation from the settlement fund, in the amount of $27 million and reimbursement of expenses of approximately $600,000. Plaintiffs’ counsel have prosecuted this litigation on a contingent fee basis, and have advanced the expenses of the litigation, in the expectation that if they were successful in obtaining a recovery for the class they would be paid from such recovery. In this type of litigation, counsel are often awarded a percentage of the common-fund recovery as their attorneys’ fees.

Further Information

You may get further information about the litigation and the Notice by calling 1 (888) 212-5605 toll free.

Plaintiffs’ counsel are Girard Gibbs LLP, 601 California Street, 14th Floor, San Francisco, California 94108; Milberg Weiss & Bershad LLP, One Pennsylvania Plaza, New York, New York 10119-0165; and Stull Stull & Brody, 6 East 45th Street, New York, New York 10017.

Reasons for the Settlement

Plaintiffs’ counsel state the principal reason for the settlement is that it represents a favorable outcome for the class, arrived at after comprehensive investigation and analysis of the factual and legal issues surrounding class members’ claims. Plaintiffs’ counsel further state that the settlement is in the best interests of the class as a whole given Defendants’ willingness to settle now for a cash payment of $100 million, payment of notice and settlement administration expenses and adoption of remedial measures to address the alleged problems giving rise to the lawsuit, balanced against the risks presented by the unresolved issues that might have been decided in Defendants’ favor, the expense and delay of continued litigation, the risks of taking the case to trial, and the risks and delay presented by an appeal in the event of a favorable outcome at trial.

Exclusions from and Comments on the Settlement

Please note that the deadline to exclude yourself or comment on the Settlement has passed.

Fairness Hearing

The Court held a fairness hearing on July 13, 2007, at 11:00 am, at the United States District Court for the Southern District of New York, Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, New York, New York, in Courtroom 24B. At the hearing, the Court granted Final Approval of the Settlement. The Court also awarded Plaintiffs’ Co-Lead Counsel for attorneys’ fees and reimbursement of expenses in the amounts requested.

PLEASE DO NOT CONTACT THE COURT FOR INFORMATION REGARDING THE SETTLEMENT

PLEASE NOTE THE FOLLOWING IMPORTANT DATES: