Top of the Agenda - Legal

MetWest 36(b) decision affirmed by Ninth Circuit

By Hillary Jackson

The Ninth Circuit Court of Appeals has affirmed a lower court's decision in favor of defendant Metropolitan West Asset Management, which had been accused of violating Section 36(b) of the Investment Company Act of 1940. In Kennis v. Metro. West Asset Magmt., LLC, filed in 2015, the plaintiff claimed MetWest ... >> CONTINUE READING <<<

Congressman reintroduces bill to curtail 36(b) lawsuits

U.S. Rep. Tom Emmer (R-Minn.) has picked up his fight against what he calls "frivolous lawsuits" against mutual fund firms by reintroducing legislation in the 116th Congress that would make it more difficult for the plaintiffs' bar to bring excessive fees cases claiming violations of Section 36(b) of the Investment ... >> CONTINUE READING <<<

Plaintiffs appeal Great-West 36(b) verdict, defendant seeks $1.5m in legal fees

By Hillary Jackson

The plaintiffs in an excessive fees case against Great-West Capital Management have appealed a Colorado judge's August ruling in favor of the defendant. Obeslo v. Great-West Capital Mgmt., LLC—a manager-of-managers case in which plaintiffs alleged the adviser delegates all of its responsibilities to sub-advisers and therefore its portion of the ... >> CONTINUE READING <<<

Victory for Great-West in 36(b) case

By Hillary Jackson

A Colorado judge has awarded a victory to Great-West Capital Management—and, by extension, the mutual fund industry—in an excessive fees case that was filed in February 2016. Judge Christine Arguello of the U.S. District Court for the District of Colorado ruled that plaintiffs failed to prove the defendant breached its ... >> CONTINUE READING <<<

UPDATED: Court denies plaintiffs' 'Hail Mary' petition in BlackRock 36(b) case

By Hillary Jackson

The U.S. Court of Appeals for the Third Circuit has denied a petition from plaintiffs in an excessive fees lawsuit against BlackRock to rehear the case. Considered a long shot, an en banc session is one in which the case is heard before all the judges of the court rather ... >> CONTINUE READING <<<

Plaintiff appeals dismissal of suit against Highland, fund board

By Hillary Jackson

The plaintiff in a lawsuit filed nearly two years ago against the board members of a Highland Funds trust and adviser Highland Management Fund Advisors has appealed a Texas judge's dismissal of the case. The suit, Lanotte v. Highland Capital Mgmt. Fund Advisors, L.P., included a class-action complaint and three ... >> CONTINUE READING <<<