Jones v. Harris Associates, L.P.

527 F.3d 627 (7th Cir. 2008)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Ps brought suit claiming that D violated § 36(b) of the Investment Company Act of 1940, 15 U.S.C. § 80a-35(b). D was paid 1% (per year) of the first $2 billion of the fund's assets, 0.9% of the next $1 billion, 0.8% of the next $2 billion, and 0.75% of anything over $5 billion. It was undisputed that these fees are roughly the same (in both level and breakpoints) as those that other funds of similar size and investment goals pay their advisers, and that the fee structure is lawful under the Investment Advisers Act. The trial court granted D summary judgment. P appealed.