Personal Injury Law

U.S. high court to hear suit over Mutual Fund fees

By Edward Bills

The justices’ decision could make it easier for fund investors to challenge the levies.
Critics have long complained that mutual fund fees are too high, wrongfully enriching Wall Street at the expense of ordinary Americans.

On Monday, the U.S. Supreme Court said it would take on the contentious issue and the justices’ decision could make it easier for fund investors to challenge the levies

The court agreed to hear a case in which individual investors have accused their fund company of charging excessive fees.

At issue is the legal standard that small investors must meet to bring lawsuits against fund companies. The court will consider whether a ruling last year sets too high a bar for investors to challenge the annual levies.

Fees have become a highly charged subject in recent years as Americans have come to rely on 401(k) plans to finance retirement, and they’ve taken on greater relevance as the stock market has tumbled during the financial crisis.

Full post as published by Bodily Injury Blog on March 10, 2009 (boomark / email).