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

The CLS Blue Sky Blog

James R. Carroll Eben P. Colby Scott D. Musoff Marley Ann Brumme

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.