Affirming the investor's right to sue over fees, the U. S. Supreme Court on Tuesday sent a lawsuit over fees in the mutual fund industry back to a lower court.
The Los Angeles Times has reported that in a 9-0 ruling, justices sent a suit against Harris Associates back to the U. S. court of appeals in Chicago, where the suit was dismissed two years ago.
The lower court was instructed to explore if the fees Harris Associates charged showed the firm as having struck a deal with its board of directors.
The fees depend "largely upon independent director watchdogs to protect shareholder interests," said Justice Samuel Alito Jr.
"We're pleased the court recognized the importance of independent boards of directors," said Mutual Fund Directors Forum attorney Carolyn McPhillips, despite the affirmation that investors can sue over fees. (With Inputs from Agencies)