Chancery Sends Suit Over “Reckless” Fund Toward Trial (Law360)

Covered by Law360

Delaware’s Court of Chancery refused to dismiss a $220 million breach of fiduciary duty claim against Guggenheim Funds Investment Advisors LLC and the trustees of the Fiduciary/Claymore Energy Infrastructure Fund (FMO), a closed-end fund formerly managed by Guggenheim. The case arose out of the fund’s liquidity crisis and collapse during market volatility in early 2020. The complaint alleges that Guggenheim recklessly over-leveraged the fund beyond virtually all peers, and after the fund’s collapse, orchestrated a transaction with a competing adviser to merge the fund away in an effort to avoid liability.

By MoKa

Morris Kandinov LLP represents the plaintiff, a non-profit foundation that invested in the fund.

For more information about the case, contact Leo Kanidnov at