Morris Kandinov LLP filed an amicus brief on behalf of Marlton Partners, L.P. in the U.S. Supreme Court advocating that the Court affirm the lower court’s ruling that Section 47(b) of the Investment Company Act of 1940 (“ICA”) provides a private right of action to stockholders of an investment company to seek rescission of a contract that violates the terms of the ICA. The brief argues that the legislative history of the ICA and the practical realities of the marketplace demonstrate clearly that Congress intended to create a private right of action to prevent investment advisers from using private contracts to violate and avoid the investor protections in the ICA. Arguments to the contrary are simply a cover for regulated advisers to avoid judicial oversight.
For additional information, contact Aaron Morris at aaron@moka.law.
