Eaton Vance Beats Investor's Broker Pay Suit

Law360, New York (March 30, 2011, 6:07 PM EDT) -- A Massachusetts federal judge on Wednesday tossed a derivative suit alleging a subsidiary of investment management company Eaton Vance Corp. unlawfully pays its broker-dealers asset-based compensation.

Judge Douglas P. Woodlock of the U.S. District Court for the District of Massachusetts concluded that Eaton Vance Municipals Trust's practice of paying, through a subsidiary distributor, asset-based fees to broker-dealers who distribute shares in the trust’s mutual funds does not violate the Investment Advisers Act.

The suit, filed on behalf of the company by shareholder Jeffrey Wiener, alleged that...
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