April 3, 2009 - The plaintiff filed a notice of voluntary dismissal without prejudice. March 31, 2009 - An investor in shares of PIMCO California Municipal Income Fund II filed a lawsuit in the U.S. District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired the common shares of certain mutual funds (see below) offered by Allianz Global Investors Fund Management LLC against the Funds' investment manager, Allianz Global Investors Fund Management LLC and the Funds' sub-adviser, Pacific Investment Management Company LLC and certain of its officers and/or trustees over alleged violations of Federal Securities Laws. PIMCO California Municipal Income Fund II PIMCO Municipal Income Fund II PIMCO Municipal Income Fund III PIMCO New York Municipal Income Fund III PIMCO California Municipal Income Fund III According to the complaint the plaintiff alleges that Funds' investment manager, Allianz Global Investors Fund Management LLC and the Funds' sub-adviser, Pacific Investment Management Company LLC and certain of its officers and/or trustees violated the Securities Exchange Act of 1934 and that the true facts, which were known by the defendants but concealed from the investing public during the above stated periods, were as follows: The Funds lacked effective controls and hedges to minimize the risk of loss and risk of liquidity from auction rate securities ( ARS ) which affected a large part of their portfolios, The Funds lacked effective internal controls to ensure that the Funds would remain in compliance with restrictions and limitations related to their investment portfolios and strategies, The extent of the Funds' liquidity risk due to the illiquid nature of a large portion of the Funds' portfolios, including ARS, was omitted; and The extent of the Funds' risk exposure to ARS was misstated.