Dismissal of Revenue-Sharing Class Actions Affirmed

March 01, 2007

With its March 15, 2007, per curiam decision in Bellikoff v. Eaton Vance Corp., the Second Circuit Court of Appeals declined to imply several new private rights of action under the Investment Company Act of 1940 ("1940 Act") and continued its recent pattern of strictly construing the available private right of action under Section 36(b) of that Act. In so doing, the court not only ended the claims of the Eaton Vance plaintiffs, but may have also sounded the death knell for several other similar cases whose appeals were awaiting the outcome in Eaton Vance. 

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