The U.S. government's lawsuit against ValueAct Capital targets could call into question routine practices across the $16 trillion mutual fund industry, according to attorneys and industry representatives. Traditional funds may need to reassess their compliance with disclosure laws, according to a memo to clients from Davis Polk, a New York law firm with expertise in financial services. "Such an institution will have to examine whether it can claim to have a truly 'passive' intent," said the memo, issued in response to the ValueAct case. Read the original story from Reuters.