Federal Court Dismisses Excessive Fee Case Against Blackrock

February 15, 2019

On February 8, 2019, a U.S. federal court in New Jersey dismissed a lawsuit filed in 2014 alleging that BlackRock breached its fiduciary duty by receiving excessive investment advisory fees from two mutual funds, in violation of Section 36(b) of the Investment Company Act of 1940. The suit by shareholders of BlackRock Global Allocation Fund and BlackRock Equity Dividend Fund involved claims that the fees were excessive compared to those paid by sub-advised funds for substantially the same services.

The full ruling is sealed for 30 days to allow the parties time to review the order and recommend redactions.


Categories

Compliance, Exchange-Traded Funds (ETFs), Investment Advisers, Investment Companies, Mutual Funds