The judge granted the defendant’s motion for summary judgment.
Plaintiffs alleged that the advisory fees paid to the defendant were excessive. They claimed that because a majority of the advisor’s duties were delegated to sub-advisors, who received part of the fee paid by the funds, the portion retained by the advisor was excessive under Section 36(b) of the Investment Company Act of 1940.
Defense counsel retained Cornerstone Research and three experts: Russell Wermers of the University of Maryland, Christopher James of the University of Florida, and a mutual fund industry expert, Russell Peppet. Cornerstone Research supported the experts through multiple reports and depositions.
The judge granted the defendant’s motion for summary judgment.
