Wednesday, November 12, 2008

Jones v. Harris Associates Plaintiffs Appeal to the Supreme Court

On November 3, 2008 petitioners filed a petition for a writ of certiorari for Supreme Court review of the 7th Circuit's ruling in Jones v. Harris Associates L.P., 527 F.3d 627 (7th Cir. 2008).  The petitioners, the plaintiffs in the underlying suit, are requesting that the Supreme Court review whether the Seventh Circuit erroneously rejected the Gartenberg factors and held that, unless the shareholder can show that the adviser misled the fund’s directors who approved the fee, a shareholder’s claim that the fund’s investment adviser charged an excessive fee is not actionable under Section 36(b) of the Investment Company Act.  The 7th Circuit's ruling is in conflict with the decisions of three other circuits, and it seems likely that the Supreme Court will take up the matter.  Response to the petition is due by December 3, 2008.

For those of you happen to be lawyers, or particularly enjoy legal prose, the full Petition for a Writ of Certiorari, Jones v. Harris Associates, No. 08-586 (U.S. Nov. 3, 2008) is available courtesy of Stradley Ronon's John Baker at: