The State Of Section 36(b) Litigation

Law360, New York (June 1, 2009, 12:00 AM EDT) -- In its long-awaited decision in Gallus v. Ameriprise Financial Inc.,[1] the U.S. Court of Appeals for the Eighth Circuit adhered to the established standard for claims for breach of fiduciary duty under Section 36(b) of the Investment Company Act of 1940 set in Gartenberg v. Merrill Lynch Asset Mgmt. Inc.,[2] but with important departures that could encourage more investor litigation pursuant to that often-tried but never successful cause of action.

Whether it does encourage more Section 36(b) litigation, however, is likely to turn on the outcome...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.