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.

Aaron Morris was quoted in an article regarding excessive fee cases published in the August 10, 2021 edition of Board IQ.

Concerning trends for asset managers continued apace in 2020, as did efforts in courtrooms, legislatures and boardrooms to protect the industry’s underbelly.

Fund directors have done little to obtain value for shareholders in connection with mergers of asset management companies, despite having ample leverage and opportunity.

Aaron Morris was quoted in an article in the January 12, 2021 edition of BoardIQ.

The investor-protection mechanisms governing mutual fund fees continue to leave some to be desired.

Recent guidance from the Mutual Fund Directors Forum on the treatment of board notes and minutes deserves a closer look.

The case law on who bears the risks inherent in a mutual fund’s operations is becoming paradoxical, and may now require intervention by mutual fund boards.

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.

The Mutual Fund Directors Forum recently released guidance to fund directors for when a fund’s investment advisor is acquired by another investment advisor. The release merits close examination.