Supreme Court Dumps Fund Fee Case

April 5, 2010

The U.S. Supreme Court's recent rejection of the fund fee case Jones v. Harris Associates will make it easier for shareholders to sue mutual funds for excessive fees, but it won't make it easier for them to take an excessive fee case to trial, let alone win. In a unanimous ruling March 30, the high court rejected the conclusions of the U.S. Seventh Circuit Court of Appeals and determined that for the time being, the 1982 precedent Gartenberg v. Merrill Lynch Asset Management was sufficient. The court sent the case back to the Seventh Circuit to try again. Interestingly, both sides hailed the ruling as a victory.

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