Board Role Key in Deciding Fee Cases, Appeals Court Says (BoardIQ)

Covered by BoardIQ

Aaron Morris was quoted in an article regarding excessive fee cases published in the August 10, 2021 edition of Board IQ.

By MoKa

In response to the 10th Circuit’s recent ruling affirming the dismissal of an excessive fee case against a mutual fund adviser, he criticized the decision for its superficial treatment of fees that significantly exceeded the norm, stating that the “lawsuit illustrated a problem with how judges view fee claims and their heavy reliance on board process.” The fund directors “obviously conducted the process required,” Morris said, “but the question to me is how good could the process have been if year after year the board approved a fee that was five times higher than the average?”

For further analysis of the ruling, see Two (Thousand) and Twenty: Developments in Asset Management Litigation.