US Supreme Court to Take Up Controlling-Investor Challenges
Justices of the US Supreme Court during a formal group photograph at the Supreme Court in Washington, DC.
Photographer: Eric Lee/BloombergThe US Supreme Court will consider whether activist investors can use an 85-year-old law to challenge corporate moves bolstering controlling shareholders, in a case being closely watched by some of Wall Street’s biggest investment funds.
In a setback to hedge fund manager Boaz Weinstein, the court agreed to review a decision allowing a lawsuit against closed-end fund provider FS Credit Opportunities Corp. and others, including BlackRock Inc., the world’s largest asset manager.