Excessive Fees by Mutual Fund Advisors

While investors in mutual funds haven't done so well in the last year, the same can't be said of the individuals who were advising the mutual funds and being paid millions of dollars. The question in a pending case (Jones v. Harris Associates, 08-586)  is whether the investment advisors violated the Federal Investment Company Act and cost investors millions while they profited. The Supreme Court will be considering this important issue.  Lower courts have dismissed the case on the basis that the investment advisers cannot be sued unless there is proof that the advisor misled shareholders.  For more information, click here.