Another Section 47(b) Claim Dismissed Against a Mutual Fund’s Distributor and Trustees for the Alleged Failure of Broker-Dealers that Receive Rule 12b-1 Fees to Register as Investment Advisers

April 18, 2011
A federal district court recently dismissed a complaint brought derivatively on behalf of Eaton Vance Municipals Trust seeking rescission, pursuant to Section 47(b) of the Investment Company Act of 1940, of the fund’s distribution agreement that provided for the payment of Rule 12b-1 fees. This update discusses the decision, as well as substantially similar lawsuits brought by the same firm against other mutual fund complexes.