Recent Developments in U.S. Excessive Fee Litigation

October 01, 2015

The U.S. mutual fund industry is poised to see significant developments in the ongoing wave of Section 36(b) “excessive fee” litigation. Days apart in August, the Seventh Circuit Court of Appeals affirmed the grant of summary judgment in Jones v. Harris Associates, L.P., while a New Jersey federal court denied defendants’ motion for summary judgment in the first of the “manager of managers” cases to reach that stage, Sivolella v. AXA Equitable Insurance Co. Together with the recent uptick in the number of cases being brought to challenge fees charged by mutual fund advisers, this area of law merits careful attention by investment advisers, mutual fund boards, and their counsel.

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