Morris Kandinov LLP partners Aaron Morris and Andrew Robertson were recently profiled and quoted in a BoardIQ article regarding the use of inspection demands in advance of litigation involving investment companies.

Morris Kandinov LLP has filed two cases seeking to recover losses incurred by investors in the Infinity Q Diversified Alpha Fund (the “Fund”), a mutual fund that announced in early 2021 that it was liquidating because of extensive securities pricing errors that rendered its last reported net asset value (“NAV”) inaccurate.

Morris Kandinov LLP represents investors in the Fiduciary/Claymore Energy Infrastructure Fund (FMO) in connection with the fund’s losses during an early 2020 liquidity crisis and a subsequent proposal to merge with the Kayne Anderson Energy Infrastructure Fund Inc (KYN).

A shareholder of the Fiduciary/Claymore Energy Infrastructure Fund (FMO), a closed-end energy fund, has filed an action against the fund’s investment adviser, subadviser, and board of trustees in connection with the fund’s liquidity crisis in 2020 and subsequently announced merger with another closed-end fund.

Morris Kandinov LLP has filed a derivative suit on behalf of shareholders of the Fiduciary/Claymore Energy Infrastructure Fund (FMO) against the fund’s board of trustees and investment advisers. The case arises from the fund’s collapse after a liquidity crisis in early 2020 and the fund’s unexpected tax expenses disclosed thereafter.

The Delaware Court of Chancery, in an October 2021 opinion, held that a board wrongfully refused a stockholder demand because it was “reasonable to infer that the directors just did not care about complying with the legal requirements of Delaware law.” The decision is a reminder to directors that their fiduciary duties do not permit them to cursorily refuse a legitimate stockholder demand, and a reminder to investors that they have meaningful legal options if a board refuses to remedy clear corporate misconduct.

Morris Kandinov LLP has filed a derivative complaint on behalf of a shareholder of Clover Health Investments, Corp. (CLOV) alleging, among other things, that the company concealed from investors, before going public through a SPAC, that the U.S. Department of Justice was actively investigating at least a dozen different matters relating to its business, which jeopardized the company’s ability to earn revenue through participation in the Medicare Advantage program.

Five Activision Blizzard Inc. stockholders have sued the gaming company in Delaware’s Chancery Court for access to documents on allegations that the company’s board and senior managers fostered “a toxic corporate culture” that tolerated harassment and discrimination.

The Delaware Court of Chancery approved a $110 million deal to end a shareholder suit that alleged breaches of fiduciary duty in connection with Liberty Broadband Corp.’s acquisition of GCI Liberty Inc.

The most recent wave of mutual fund fee litigation is now over and investors should not be happy with the result. The wave consisted of 25 or so cases alleging that the fees charged by mutual fund advisers were excessive. While a handful settled, most were dismissed at various procedural stages by federal judges who couldn’t find an excessive fee in the entire lot.