Alex Kreonidis | Bloomberg Law Gaines v. Janus Capital Mgmt., LLC, No. 10-01207, 2011 BL 304462 (4th Cir. Dec. 2, 2011) In an unpublished opinion, the U.S. Court of Appeals for the Fourth Circuit affirmed a district court's grant of summary judgment in favor of three mutual fund trusts (Trusts), two of their service providers, and an affiliate (collectively, Defendants). Plaintiffs held shares in certain of the funds comprising the Trusts and brought derivative claims against Defendants under Sections 36(b) and 47(b) of the Investment Company Act of 1940 (Investment Company Act), alleging improper market timing arrangements and breach of fiduciary duty. In affirming the district court's grant of summary judgment, the Fourth Circuit addressed whether (1) Defendants were entitled to claim certain "offset damages," (2) plaintiffs could recover "flight damages," and (3) plaintiffs were entitled to rescission. The Fourth Circuit declined to rule on whether plaintiffs had standing to sue on behalf of funds they did not own.
Janus Funds and Defendants
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