After a long, winding legal road, involving no fewer than six federal court decisions,
The suit, Gallus v.
The first allegation was that fee negotiations were flawed because they were based on external factors, namely the fee agreements of similar mutual funds in the market.
The second allegation was that Ameriprise provided comparable advisory services to institutional, non-fiduciary clients at substantially lower fees than it charged the plaintiffs.
The final allegation of the suit was that Ameriprise misled the Fund’s board of directors (the Board) about its arrangements with non-fiduciary clients to prevent the Board from questioning the higher fees charged to the plaintiffs.
When deciding in favor of Ameriprise, a Judge
The suit was first seen in front of the court for the District of
In his opinion,
However, he continued “the plaintiffs urge us to forego reconsideration of that holding, but after Jones, a process-based failure alone does not constitute an independent violation of 36(b). Instead, we have been instructed that 36(b) 'is sharply focused on the question of whether the fees themselves were excessive.'"
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