alleges that in the spring of 2002, Janus allowed Canary partners to engage in after hours trading of their funds. Because a number of companies report their earnings just after market close, Canary was able to make trades in Janus funds based on new information but at the old prices. When Janus allowed these trades to take place, they were diluting the returns of existing mutual fund shareholders. For example, if an earnings report about a major holding in a Janus fund announced spectacular earnings after market close, we would expect that stock to do well the following day. But investors typically cannot trade on this information because the new information is already integrated into the stock price. However, the news will not be reflected in the Janus fund share price until the close of business the next day. So when Janus allowed Canary the opportunity to trade their shares at the old prices which were not based on the new information, they allowed the company to make a very low-risk profit. And the shareholders are the ones who ge
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