A running log of legal and regulatory developments in the world of closed end funds packaged with unsolicited and (sometimes) insightful pro-investor commentary.

Delaware Chancery Court ruling permits interim distribution of remaining trust funds while litigation over broken transaction proceeds.

The Delaware Chancery Court upheld claims for breach of fiduciary duty and wrongful dilution arising from a proxy contest in 2023.

The Court of Appeals has confirmed that the use of a control share bylaw by a Massachusetts trust violates the Investment Company Act of 1940.

The U.S. District Court certified a class of Pioneer Merger Corp. stockholders in a dispute over the distribution of a termination fee paid to the SPAC following a broken transaction.

U.S. District Court denies defendants’ motion to dismiss in dispute over $32.5 million termination fee payment.

The court denies defendants’ motion to dismiss claims arising from a closed-end fund’s collapse and subsequent unfair merger.

Vice Chancellor Zurn denies defendants’ motion to dismiss in case arising from the collapse of the Infinity Q Diversified Alpha Fund.

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.

In a recent Delaware Court of Chancery decision, stockholders of Gilead Sciences, Inc. successfully obtained attorneys’ fees after prevailing in a books and records action against the company.