Vanguard's Motion to Dismiss S&P Case is Denied
August 21, 2000
The U.S. District Court for the Southern District of New York has tossed out a motion by Vanguard of Malvern, Pa. to dismiss a lawsuit that Standard & Poor's parent company, McGraw-Hill of New York, brought against Vanguard for using the S&P 500 Index for an exchange-traded class of shares.
McGraw-Hill charged Vanguard with using its S&P 500 Index without a license.
Vanguard is scheduled to introduce exchange-traded share classes for five funds by the end of the summer, and it is not known whether this lawsuit will delay that launch. (MFMN 5/12/00) The judge and attorneys on the case are scheduled to meet in September, according to published reports.