Pre-Lawsuit Demands to Funds a New(ish) Front for Plaintiffs (BoardIQ)

Covered by BoardIQ

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. The article noted that the firm has submitted a number of inspection demands on behalf of fund shareholders, however, “not every books and records demand will lead to litigation.” Indeed, the firm “found no reason to bring legal complaints after reviewing the information some funds provided.”

By MoKa

The article also addressed the focus on fund trustees in two recent cases filed by the firm involving the Fiduciary/Claymore Energy Infrastructure Fund (FMO) and the Infinity Q Diversified Alpha Fund (IQDNX/IQDAX). “There seems to be a sense we’re targeting directors,” Robertson said, but “[t]hat’s very much not the case.” However, “when the evidence suggests boards did not do their jobs, they are fair game,” Morris said.

The article also noted the firm’s willingness to discuss potential litigation with independent fund trustees, who are statutorily assigned to advance the interests of investors. Morris stated that “I would always have a conversation with the board, the independent trustees, about whether they have an appetite to bring an action against the provider.”

For more information regarding Morris Kandinov’s asset management practice, see the firm’s practice area page or contact Aaron Morris at