EQUI-VEST - AXA Equitable

effect on the Portfolio or on Caywood-Scholl’s ability to perform its investment
advisory services relating to the Portfolio.
The foregoing speaks only as of the date of this prospectus. While there
may be additional litigation or regulatory developments in connection
with the matters discussed above, the foregoing disclosure of litigation
and regulatory matters will be updated if those developments are
material.
Evergreen Investment Management Company LLC
(“EIMC”)
Pursuant to an administrative order issued by the SEC on September 19,
2007, Evergreen Investment Management Company, LLC (“EIMC”),
Evergreen Investment Services, Inc. (“EIS”), Evergreen Service Company,
LLC (“ESC” and together with EIMC and EIS, the “Evergreen Entities”),
Wachovia Securities, LLC and the SEC have entered into an agreement
settling allegations of (i) improper short-term trading arrangements relating
to mutual funds advised and distributed by the Evergreen Entities
(“Evergreen funds”) in effect prior to May 2003 involving former officers
and employees of EIMC and certain broker-dealers, (ii) insufficient
systems for monitoring exchanges and enforcing exchange limitations
as stated in certain Evergreen funds’ prospectuses, and (iii) inadequate
e-mail retention practices. Under the settlement, the Evergreen Entities
were censured and will pay approximately $32 million in disgorgement
and penalties. This amount, along with a fine assessed by the SEC
against Wachovia Securities, LLC, will be distributed pursuant to a plan
to be developed by an independent distribution consultant and approved
by the SEC. The Evergreen Entities neither admitted nor denied
the allegations and findings set forth in their settlement with the SEC.
In addition, the Evergreen funds and EIMC and certain of its affiliates
are involved in various legal actions, including private litigation and
class action lawsuits. EIMC does not expect that any of such legal actions
currently pending or threatened will have a material adverse
impact on the financial position or operations of the EQ/Evergreen
International Bond Portfolio, EQ/Evergreen Omega Portfolio or on
EIMC’s ability to provide services to the Portfolios.
Although EIMC believes that none of the matters discussed above will
have a material adverse impact on the EQ/Evergreen Omega Portfolio or
the EQ/Evergreen International Bond Portfolio, there can be no assurance
that these matters and any publicity surrounding or resulting from
them will not result in reduced sales or increased redemptions of Portfolio
shares, which could increase Portfolio transaction costs or operating
expenses, or that they will not have other adverse consequences on the
Portfolios.
Franklin Advisory Services, LLC, Franklin Mutual Advisers,
LLC, Franklin Advisers, Inc. and Templeton Global Advisors
Limited
On August 2, 2004, Franklin Resources, Inc. announced that Franklin
Advisers, Inc. (“Franklin Advisers”) (adviser to many of the funds within
Franklin Templeton Investments, and an affiliate of the adviser to the
other funds) reached a settlement with the SEC that resolved the issues
resulting from the SEC’s investigation of market timing activity in the
Franklin Templeton Investments funds. Under the terms of the settlement
and the SEC’s administrative order, pursuant to which Franklin
Advisers neither admitted nor denied any of the findings contained
therein, Franklin Advisers agreed, among other matters, to pay $50 million,
of which $20 million is a civil penalty, to be distributed to shareholders
of certain funds in accordance with a plan to be developed by
an independent distribution consultant. Such a distribution plan has
been prepared and submitted to the SEC for approval. After publication
of notice of the plan and a 30-day comment period, the proposed plan
of distribution will be submitted to the SEC for approval. Following the
SEC’s approval of the plan of distribution, with modifications as appropriate,
distribution of the settlement monies will begin in accordance
with the terms and conditions of that settlement and the plan.
Franklin Resources, Inc., certain of its subsidiaries and certain funds,
current and former officers, employees, and directors have been named
in multiple lawsuits in different courts alleging violations of various federal
securities and state laws and seeking, among other relief, monetary
damages, restitution, removal of fund trustees, directors, advisers, administrators,
and distributors, rescission of management contracts and
12b-1 plans, and/or attorneys’ fees and costs. Specifically, the lawsuits
claim breach of duty with respect to alleged arrangements to permit
market timing and/or late trading activity, or breach of duty with respect
to the valuation of the portfolio securities of certain Templeton funds
managed by Franklin Resources, Inc. subsidiaries, allegedly resulting in
market timing activity. The majority of these lawsuits duplicate, in
whole or in part, the allegations asserted in the SEC’s findings as described
above. The lawsuits are styled as class actions, or derivative actions
on behalf of either the named funds or Franklin Resources, Inc.
To date, more than 400 similar lawsuits against at least 19 different
mutual fund companies, among other defendants, have been filed in
federal district courts throughout the country. Because these cases involve
common questions of fact, the Judicial Panel on Multidistrict Litigation
(the “Judicial Panel”) ordered the creation of a multidistrict
litigation in the United States District Court for the District of Maryland,
entitled “In re Mutual Funds Investment Litigation” (the “MDL”). The
Judicial Panel then transferred similar cases from different districts to
the MDL for coordinated or consolidated pretrial proceedings.
On December 13, 2004, Franklin Templeton Distributors, Inc. (“Franklin
Distributors”) (the principal underwriter of shares of the Franklin
Templeton mutual funds) and Franklin Advisers reached an agreement
with the SEC, resolving the issues resulting from the SEC’s investigation
concerning marketing support payments to securities dealers who sell
fund shares. In connection with that agreement, in which Franklin Advisers
and Franklin Distributors neither admitted nor denied any of the
findings contained therein, they agreed to pay the funds a penalty of
$20 million and disgorgement of $1 (one dollar), in accordance with a
168 Management of the Trust EQ Advisors Trust