AEFA Settlement Granted Preliminary Approval

Girard Gibbs Announces Preliminary Approval of $100 million Settlement in In Re American Express Financial Advisors Securities Litigation

February 15, 2007 - On February 15, 2007 a federal judge in the Southern District of New York granted preliminary approval to a proposed $100 million settlement of the securities class action and related claims against American Express Financial Advisors. The settlement, signed off on by U.S. District judge Deborah A. Batts, covers clients of (“AEFA”) who purchased financial advisory services or financial advice (such as a financial plan) and/or mutual funds in the American Express family of mutual funds between March 10, 1999 and February 9, 2004.

The class action alleges that the defendants, while representing that they provided objective financial planning and advice tailored to their clients’ circumstances, in fact they provided “canned” financial plans and advice designed to steer clients into certain non-proprietary and proprietary mutual funds.

A hearing is currently scheduled to be held on June 4, 2007 to determine whether the Court will approve the proposed settlement as fair, reasonable and adequate.