Top of the Agenda - Legal

BlackRock 36(b) case survives summary judgment

By Hillary Jackson

An excessive fees case against BlackRock Investment Management survived summary judgment this week when U.S. District Court Judge Freda Wolfson granted the plaintiffs' motion in part, while denying it in part. Similarly to the the ruling two years ago in a case against Hartford Investment Financial Services, the court determined ... >> CONTINUE READING <<<

MetWest judge's privilege ruling a comfort to fund boards, counsel

By Hillary Jackson

A California judge has denied a request in an excessive fees case against Metropolitan West Asset Management that would have given the plaintiff access to privileged fund board material withheld during discovery. U.S. District Court Judge George Wu's ruling earlier this month was the latest to uphold attorney-client privilege in ... >> CONTINUE READING <<<

WAMCO hit with demands, books/records requests, 36(b) suit

By Hillary Jackson

A new excessive fees lawsuit has been filed against Western Asset Management Co. (WAMCO) by a plaintiff who also has taken initial steps to file breach of fiduciary duty litigation. Claiming section 36(b) violations, Winston v. Western Asset Mgmt. Co. focuses on the fees charged for the Western Asset/Claymore Inflation-Linked ... >> CONTINUE READING <<<

You've received a shareholder demand; now what?

By Hillary Jackson

How prepared is your board to handle a demand from a fund shareholder wishing to bring a derivative action against the adviser?

Shareholders suing on behalf of a mutual fund for breach of fiduciary duty and/or breach of contract first must in almost all circumstances first make a demand on the ... >> CONTINUE READING <<<

Former DIM chief Grim joins Stradley Ronon

By Hillary Jackson

David Grim, former director of the Securities and Exchange Commission's Division of Investment Management, has landed at Stradley Ronon, some six months after he left the agency. Sara Crovitz, former deputy chief counsel and associate director in DIM's chief counsel's office, also has joined Stradley. Both have been named partners in the ... >> CONTINUE READING <<<

Courts grant summary judgment to two 36(b) defendants

By Hillary Jackson

Two district courts in the past week have granted summary judgment to defendants in excessive fees cases, bolstering a shift in momentum that could signal an end to the filing of lawsuits alleging violations of Section 36(b) of the Investment Company Act of 1940. The rulings in the two cases—Goodman ... >> CONTINUE READING <<<