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Fee Litigation
Court Refuses to Dismiss Excessive Advisory Fee Case
December 21, 2012
A federal judge recently refused to dismiss a complaint against Hartford Investment Financial Services alleging excessive investment advisory fees under section 36(b) of the Investment Company Act. As Stradley Ronon's John Baker explains: “According to the complaint, the defendant fund adviser pays sub-advisers to… read more
Gallus Fee Litigation Ruling Issued
April 03, 2012
On March 30, 2012, the Eighth Circuit Court of Appeals granted summary judgment in favor of Ameriprise Financial, ending the Gallus litigation. Plaintiffs had alleged in part that Ameriprise breached its fiduciary duty to shareholders because of a flawed fee negotiation, saying that Ameriprise provided… read more
SEC Reviewing Excessive Mutual Fund Fees
November 21, 2011
According to a recent Ignites article, the SEC is currently conducting a number of investigations regarding excessive mutual fund fees. Although the SEC issued a "Cease and Desist" order in a case regarding subadvisory fees on November 16th, it is likely that the SEC… read more
SEC Issues “Cease and Desist” Order for Improper Fee Arrangement
November 17, 2011
On November 16, 2011, the SEC issued a "Cease and Desist" order against Morgan Stanley Investment Management ("the adviser") for paying fees to an unaffiliated entity for research services (that the order characterizes as sub-adviser) that the SEC states were not rendered to a closed-end… read more
Ninth Circuit Decision in Fee Litigation
August 25, 2011
The Ninth Circuit Court of Appeals has affirmed a district court decision holding that the plaintiffs failed to prove that Capital Research breached its fiduciary duty under Section 36(b) of the Investment Company Act of 1940 in an excessive fee suit against the funds'… read more