CORP. GOV. & SECURITIES CASES
U.S. 7th Circuit, May 19, 2008
Jones v. Harris Associates L.P., No. 07-1624
Summary judgment for defendant in an action alleging high fees in violation of section 36(b) of the Investment Company Act of 1940 is affirmed where the circuit court rejects the approach in Gartenberg v. Merrill Lynch Asset Management, Inc. 694 F.2d 923 (2d Cir. 1982) interpreting section 36(b) as merely delineating a fiduciary standard and not creating a "reasonableness" approach in relation to the fees imposed.
Read more...
U.S. 8th Circuit, May 19, 2008
Siepel v. Bank of America, N.A., No. 07-1899/07-1906
In an appeal primarily addressing whether the Securities Litigation Uniform Standards Act of 1998 (SLUSA) preempted state-law claims that a trustee breached its fiduciary duty by failing to disclose conflicts of interest in its selection of nationally-traded investment securities, the circuit court finds that SLUSA does preempt.
Read more...
