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Investment Management Private Right of Action

Ropes & Gray LLP

Supreme Court to Consider Closing a Back Door to Fund Litigation Claims Under the Investment Company Act

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On June 30, the U.S. Supreme Court agreed to hear a case that will determine whether Section 47(b) of the Investment Company Act of 1940 (ICA) creates a private right of action for shareholders of registered investment...more

Carlton Fields

Can Shareholders Rescind an Investment Company’s Contracts Based on 1940 Act Violations?

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Section 47(b) of the Investment Company Act of 1940 provides that contracts that violate or “whose performance involves, a violation of” the act are not enforceable by “either party.” ...more

Carlton Fields

Second Circuit Opens Door to Lawsuits Based on Contract Violating 1940 Act

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The Second Circuit has decided that Section 47(b) of the Investment Company Act of 1940 provides a private right of action for rescission of a contract that violates any provision of the 1940 Act or any rule or order...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - September 2019

In this issue, we summarize regulatory, litigation and industry developments from May to September 2019 impacting the investment management sector, including SEC action on standards of conduct for broker-dealers and...more

Goodwin

Not Dead Yet: Second Circuit Revives Private Rights of Action Under Section 47(B) of the Investment Company Act of 1940

Goodwin on

Since 2002, federal courts have refused to find that implied private rights of action exist under the Investment Company Act of 1940 (ICA). Last week, however, the United States Court of Appeals for the Second Circuit held...more

Allen Matkins

Unlicensed Broker-Dealers And Investment Advisers Face Treble Damages

Allen Matkins on

In Yokell v. Draper, 2018 U.S. Dist. LEXIS 117427, U.S. Magistrate Judge Jacqueline Scott Corley wrote that "California Code of Civil Procedure section 1029.8 provides a private right of action for persons harmed by...more

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