Top of the Agenda - Legal

'40 Act lawyers: GSAM settlement raises questions

By Hillary Jackson

The news on Tuesday that Goldman Sachs Asset Management agreed to pay $4 million to settle Securities and Exchange Commission charges related to how it manages ESG mutual funds and other products has '40 Act lawyers pointing to inconsistencies and mixed messages coming from the regulator.

The SEC charged GSAM for ... >> CONTINUE READING <<<

Vanguard, fund board hit with class-action suit over tax bills

By Hillary Jackson

The independent directors of Vanguard Funds were named last week as defendants in a class-action lawsuit brought by a group of retail investors. The plaintiffs' claims center around high tax bills they received in 2021 that stemmed from unusually large capital gains distributions from target-date funds held in taxable accounts. ... >> CONTINUE READING <<<

Saba v. Nuveen: Adviser, fund board fight for control share amendment

By Hillary Jackson

Five Nuveen Investments closed-end funds and the board members who oversee them are fighting a lawsuit that alleges the funds' adoption of a control share bylaw amendment violated the Investment Company Act of 1940. A federal judge granted summary judgment to plaintiffs Saba Capital Management and an affiliate in February, ... >> CONTINUE READING <<<

Plaintiffs drop American Century 'closet indexing' suit

By Hillary Jackson

The plaintiffs in a class-action suit filed in November against American Century Investment Services, affiliated entities, fund directors, and some officers have voluntarily dismissed all claims. The suit accused defendants of so-called closet indexing, with the plaintiffs maintaining they paid fees for active management they did not get and also ... >> CONTINUE READING <<<

'Closet indexing' suit targets American Century, fund board

By Hillary Jackson

A class-action suit filed earlier this month that alleges so-called closet indexing targets American Century Investment Services and several affiliated entities, as well as the directors and some officers of the mutual fund at the center of the case. Plaintiffs maintain they paid fees for active management they did not ... >> CONTINUE READING <<<

Appeals court rules for Great-West, resolving final 36(b) case

By Hillary Jackson

An appeals court has affirmed a ruling in favor of the defendant in Obeslo v. Great-West Capital Mgmt., LLC, ending the last of more than two dozen lawsuits filed since 2010 that alleged violations by mutual fund companies of Section 36(b) of the Investment Company Act of 1940. Still unresolved ... >> CONTINUE READING <<<