Top of the Agenda - Legal

MD court rejects Sequoia Fund derivative claims

By Hillary Jackson

A Maryland court this week dismissed derivative claims against the directors of Sequoia Fund and its investment adviser related to the fund's 2015 investment in Valeant Pharmaceuticals. The ruling, from Baltimore City Circuit Court Judge W. Michel Pierson, is the latest victory for Sequoia Fund's directors and adviser after years ... >> CONTINUE READING <<<

Plaintiff appeals MetWest 36(b) verdict

By Hillary Jackson

The plaintiff in an excessive fees case against Metropolitan West Asset Management already has appealed a California judge's ruling in favor of the defendant, handed down just days ago. U.S. District Court Judge George Wu, of the Central District of California, on Monday found in favor of MetWest, which had ... >> CONTINUE READING <<<

MetWest 36(b) triumph affirms industry optimism

By Hillary Jackson

Metropolitan West Asset Management was handed a victory in court this week, one that mutual fund industry litigators say could finally put an end to lawsuits that "blindly compare advisory fees to sub-advisory fees." U.S. District Court Judge George Wu, of the Central District of California, on Monday dismissed Kennis ... >> CONTINUE READING <<<

Plaintiffs appeal Davis 36(b) dismissal

By Hillary Jackson

The plaintiffs in an excessive fees case against Davis Selected Advisers have appealed a Southern District of New York judge's dismissal of the lawsuit. The court had granted defendants' motion for summary judgment in late May, five years after the original case—now consolidated into In re Davis N.Y. Venture Fund Litig.—was ... >> CONTINUE READING <<<

Oral arguments tomorrow in Sequoia Fund appeal; case to test Northstar ruling

By Hillary Jackson

The U.S. Court of Appeals for the Second Circuit will hear oral arguments Thursday morning in a breach of contract case against Sequoia Fund that centers on an investment policy contained in part of the fund's prospectus. Edwards v. Sequoia Fund is viewed as potentially significant because Second Circuit could ... >> CONTINUE READING <<<

Summary judgment granted in Davis 36(b) case

By Hillary Jackson

A U.S. District Court in New York has granted defendants' motion for summary judgment in a five-year-old excessive fees lawsuit against Davis Selected Advisers, the latest such case to be dismissed before anyone enters a courtroom. "While we’ll have to wait until June 12 to see the opinion when it ... >> CONTINUE READING <<<