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Comments cost Fidelity

Published Oct. 2, 2005

Jeff Vinik is still costing Fidelity Investments money.

The mutual fund giant has agreed to pay $10-million to settle a class-action lawsuit that resulted from comments Vinik made when he managed Magellan, Fidelity's largest fund. Vinik left Fidelity in 1996.

In a magazine interview in late 1995, Vinik made some positive remarks about the stock of Micron Technology, a producer of semiconductors.

It was later revealed that while Vinik was talking up the merits of Micron, he was selling most of Magellan's holdings in the stock.

Some Micron shareholders filed suit. Fidelity has denied there was anything improper about Vinik's remarks. Officials said the company agreed to settle so it could focus its money and energy on other things.

Fidelity Management and Research will pay the $10-million, so the settlement will not affect Magellan shareholders.

Fund prices not published

As the stock market bucked and shook last week, Fidelity Investments and a few other fund companies were unable to provide some closing-price information in time to hit the morning papers, including the St. Petersburg Times.

Among the funds missing in action Tuesday or Wednesday morning was Fidelity's $63-billion flagship fund, Magellan. Some of the prices Fidelity did provide Wednesday were incorrect.

Vanguard Group and John Hancock Funds also had a substantial number of funds without prices.

Investors who want to find missing prices or check for correct prices should call the fund companies.

_ Compiled from reports by the Associated Press and the Boston Globe.