Litigation Partner Discusses Second Excessive-Fee Suit Brought Against Fund Firm in Ignites

In a Dec. 11 Ignites article titled “Claims Against Russell Broadened in New Fee Suit,” litigation partner Rob Skinner (Boston) explains the recovery of damages in excessive-fee lawsuits under the Investment Company Act of 1940. He explains that the plaintiff in a case against Russell Investments filed a new suit in an attempt to increase the amount of money he can recover, as recovery of fees can be limited to the year prior to the date the suit was filed. Mr. Skinner notes “In some cases, plaintiffs file an additional complaint, often mirroring the allegations in the first complaint, on the one-year anniversary of filing the first complaint, to make sure … that they are looping in the subsequent year of potential damages.”