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Firm Memoranda

Seventh Circuit Decision in Jones v. Harris Associates L.P.

Date: 05/22/08

On May 19, 2008, the United States Court of Appeals for the Seventh Circuit affirmed the granting of summary judgment in favor of Harris Associates, a registered investment adviser, finding that the fees charged by Harris Associates to open-end mutual funds were sufficiently constrained by market forces and competition, and that no inquiry needed to be made as to the fees' reasonableness under Section 36(b) of the Investment Company Act of 1940, as amended (the "Act").1

CGR Memo - Jones v Harris Associates - 7th Circuit holds judicial price-setting does not accompany fiduciary duties under Section 36(b) of the '40 Act.pdf (pdf | 36.04 KB )