Top of the Agenda - Legal

'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 <<<

 

 

T. Rowe case dismissal all but ends 36(b) litigation
By Hillary Jackson
The dismissal last week of an excessive fees case against T. Rowe Price Associates effectively ends the plaintiffs' bar's years-long campaign to prove mutual fund firms routinely overcharge their shareholders. The collecting of so-called excessive fees, as alleged in nearly 30 cases filed against fund firms between 2010 and 2018, ...  >> CONTINUE READING <<<

 

 

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 Mgmt., 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 <<<

 

 


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Top of the Agenda - Regulatory
2010-2020: A decade of regulatory developments

There certainly has been considerable change over the past 10+ years in the investment company industry and its regulation. From 2010 to 2020, the net assets ...