Milbank Litigation & Arbitration partners Sean Murphy and Robert Liubicic, along with associate Ayana Sumiyasu, recently authored an article titled “Judicial Deference to Mutual Fund Boards: Lessons from Post-Jones Excessive Fee Litigation” for The Review of Securities & Commodities Regulation.
In the article, the authors analyze litigation resulting from the Supreme Court’s Jones v. Harris Associates L.P. decision. Following the ruling, there was a large wave of actions filed by the plaintiffs’ bar claiming that mutual funds paid excessive fees to their advisers. Though these claims have been rejected by courts, the authors conclude that recent decisions provide valuable insights into current best practices for fund directors.
