Mutual Fund Company Shareholder Suits May Split Court
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U.S. Supreme Court justices, hearing arguments in a case involving Janus Capital Group Inc., signaled they are divided about restricting securities fraud suits by shareholders of mutual fund companies.
The court today reviewed a ruling that let shareholders sue Janus and a subsidiary for helping produce allegedly misleading prospectuses for Janus mutual funds. Janus contends the funds are separate legal entities and that neither the parent company nor the subsidiary were responsible for the prospectuses.