September 23, 2014
WASHINGTON (AP) - The federal courts will resolve the question of whether mutual funds are charging too much in fees, the Supreme Court says.
The high court in an opinion Tuesday sent a lawsuit brought by investors against a mutual fund company for charging excessive fees back to a lower court for resolution.
Jerry N. Jones, Mary F. Jones and Arline Winerman own shares in the Oakmark complex of mutual funds. They sued Harris Associates L.P., which advises Oakmark. The plaintiffs say that Harris' fees are so high they violate the federal Investment Company Act, which is supposed to combat excessive investment adviser fees.
Lower courts had thrown the lawsuit out, saying that such suits cannot be brought unless shareholders can prove that the adviser misled the fund directors who approved the fee.
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.