Skadden Discusses BlackRock Win in One of Largest Mutual Fund Cases Ever

Partners James Carroll, Eben Colby and Scott Musoff, counsel Christopher Lisy and associate Marley Ann Brumme discuss a recent decision by the U.S. District Court for the District of New Jersey, which ruled in favor of certain subsidiaries of BlackRock, Inc. on $1.55 billion in claims brought under Section 36(b) of the Investment Company Act concerning two of BlackRock’s largest mutual funds. The ruling is the first trial decision on the so-called “subadvisory” or “reverse manager of managers” theory in excessive fee litigation.