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Refocusing the Jones Analysis: New Trends in Excessive Fee Litigation  

Author:  Amy D. Roy.; Jonathan R. Ference-Burke.; Hannah C. Vail.

Source: Volume 53, Number 11, June 1 2020 , pp.131-138(8)

Review of Securities & Commodities Regulation

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Following the Supreme Court’s Jones decision, the plaintiff’s bar has launched more than two dozen lawsuits against mutual fund investment advisers challenging their fees. None has been ultimately successful in court. The authors review this litigation, addressing the courts’ rejections of plaintiffs’ various arguments. They then argue that future cases should be decided by summary judgment or on motion to dismiss. They close by advising investment advisers and fund boards to remain mindful of the threat of such claims.

Keywords: Jones v. Harris Associates L.P.; Investment Company Act Section 36(b); Gartenberg v. Merrill Lynch Asset Mgmt., Inc.

Affiliations:  1: Ropes & Gray LLP; 2: Ropes & Gray LLP; 3: Ropes & Gray LLP.

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