Top of the Agenda - Legal

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 <<<

Post-AXA JPMorgan 36(b) case dismissed

By Hillary Jackson

The only new excessive fees case to be filed since the August 2016 Sivolella v. AXA Equitable Life Insurance Co. decision has been dismissed by a judge in the Southern District of New York. U.S. District Court Judge George Daniels on Wednesday granted the defendant's motion to dismiss Pirundini v. JPMorgan ... >> CONTINUE READING <<<

Proposed bill aims to curtail 'frivilous' 36(b) cases

By Hillary Jackson

Legislation that would make it more difficult for the plaintiffs' bar to bring excessive fees cases against the mutual fund industry has made its way through the House Financial Services Committee and could—if ultimately successful in becoming law—go a long way in reducing the number of such lawsuits. Fund directors, ... >> CONTINUE READING <<<

MoFo's Jay Baris moves to Shearman

By Hillary Jackson

Industry lawyer Jay Baris today joins Shearman & Sterling LLC as a partner in the global funds and regulatory practice. The hiring of Baris, just a few months after the firm added Andrew "Buddy" Donohue to its ranks, is part of Shearman's expansion in the global funds business—one with which ... >> CONTINUE READING <<<