Pretty Please, Can We Sue You?

Updated from 8:13 a.m. ET March 7

As if the likelihood of winning a lawsuit against the manager of a mutual fund weren't slim enough already, Maryland is trying to make it virtually impossible.

In many cases, shareholders can sue their mutual fund manager only if they first ask the fund's directors to do so on their behalf. If shareholders want to sue the manager directly, they must show that the directors are not truly independent of the manager. The Maryland Legislature is considering a bill that would make it impossible to make this showing.

Complete Immunity for Conflicted Directors

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