From the Editor...
There has been a lot of activity in the courts in recent weeks, and the fund industry has emerged well in each case. Earlier this month, the parties in a nearly 4-year-old 36(b) case against PIMCO, which involved the firm's Total Return Fund and focused on compensation paid to Bill Gross, agreed to withdraw the action. And in July, an appeals court in New York upheld the dismissal of a lawsuit brought in 2016 against Sequoia Fund, its adviser, and most of its board of directors. These two instances follow the decision earlier this summer to uphold the ruling in favor of the defendant in Sivolella v. AXA ruling from two years ago.
The plaintiffs' bar has struggled to make headway with the dozens of excessive fees cases it has brought against the mutual fund industry, and litigators have speculated that plaintiffs' lawyers will attempt a new approach at some point. That issue is one of 10 Things...Boards will be talking about this fall. Another topic for directors to think about—Should a Board Have a Reputation?—is featured in a piece published by Edelman, which we've posted in our Added Perspective section.
And finally, this month we spoke with Capitol Series Trust Chairman Wally Grimm for our A Seat at the Table profile. He provides insight on the decision to double the board's size and details some of the process the directors went through during the board makeover. It's good reading.
As we sign off this week, we embark on FBV's annual two-week August shutdown. We will not publish stories or any content until after Labor Day, though we are reachable by email should you need us. Enjoy the rest of August and soak up as much of summer as you can; before we know it, the weather will cool off we'll be all-too-focused on year-end tasks.
Hillary Jackson, founding editor