Top of the Agenda - Legal

WilmerHale taps Ex-IM Division leader Greiner to head IM practice

Natasha Vij Greiner, who left the Securities and Exchange Commission in July after 24 years, will join WilmerHale in January as chair of the Investment Management Practice, the firm announced on Monday. Greiner spent her final 15 months at the SEC as director of the Division of Investment Management, and ... >> CONTINUE READING <<<

Industry watches as 'messy' Wildermuth Fund case unfolds

By Hillary Jackson

Fund industry litigators and others are watching an expansive class-action lawsuit filed recently against an interval fund that has been scheduled for liquidation since mid-2023, certain of the fund's former officers, and its former auditor, former adviser, and past and present board members. In the Wildermuth Fund suit, filed at ... >> CONTINUE READING <<<

Vanguard close to $25M settlement in class-action suit

By Hillary Jackson

A federal judge has given preliminary approval to a plan for Vanguard Group to pay $25 million to settle a class-action suit related to misleading statements about its target-date funds. Vanguard and its fund board have faced years of legal and regulatory challenges resulting from the adviser's decision in late ... >> CONTINUE READING <<<

MFDF, ICI push Supreme Court to nix private right of action ruling

By Hillary Jackson

The Investment Company Institute and MFDF this week urged the U.S. Supreme Court to rule against allowing private parties to bring claims that fund contracts violate the Investment Company Act of 1940. Such claims have been used—successfully—by activist investors in recent years to challenge closed-end funds' defensive measures. The Court agreed ... >> CONTINUE READING <<<

Supreme Court to review legality of activist suits

By Hillary Jackson

The U.S. Supreme Court on Monday agreed to consider whether private parties should be allowed to bring claims that fund contracts violate the Investment Company Act of 1940. Such claims have been used by activist investors in recent years to challenge closed-end funds' defensive measures, and the Court will review ... >> CONTINUE READING <<<

Saba v ASA court ruling: Poison pills legal, but extending them violates '40 Act

In what could be considered a victory for closed-end funds, a New York court has ruled that shareholder rights plans, or poison pills, are legal under the Investment Company Act of 1940. However, the court granted summary judgment to Saba Capital Management on its claim for rescission of ASA Gold ... >> CONTINUE READING <<<