Judge Phyllis Hamilton ruled that the section of the Investment Company Act of 1940 provides a “remedy for a violation of ‘any provision of [the ICA], or of any rule, regulation, or order thereunder,’ rather than a distinct cause of action or basis for liability.” He also disagrees with the plaintiff’s interpretation of the Financial Planning casing, arguing that it is “irrelevant” to 12(b)-1 fees.
Other firms that may be affected by the Franklin decision on what law firm Milberg calls “excessive and unlawful” fees include: BlackRock, PIMCO, The Hartford, Ivy, MFS, First Eagle, Davis, Evergreen, Calamos, Van Kampen, Columbia, Lord Abbett, Loomis Sayles, Legg Mason, AllianceBerStein, Thornburg, Transamerica, Putnam, Russell, Allianz and Invesco.
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Max Chen contributed to this article.