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.

A Massachusetts Superior Court decision in March 2021 reaffirms the significant contractual, state law, and federal law protections over fund shareholder voting rights.

The U.S. Court of Appeals for the 2nd Circuit, in Oxford University Bank v. Lansuppe Feeder LLC, held that Section 47(b) of the Investment Company Act of 1940 creates a private right of action to seek rescission of an unlawful contract.