Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Judge Tosses BlackRock Compensation Suit Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, August 29, 2013

Judge Tosses BlackRock Compensation Suit

News summary by MFWire's editors

It looks like a lucky asset manager will be spared further legal headaches.

BlackRock [profile] won dismissal of a suit brought by the Laborers Local 265 Pension Fund and the Plumbers and Pipefitters Local No. 572 Pension Fund, which alleged that the asset manager collected "grossly excessive" compensation from securities-lending returns to iShares, Bloomberg's Andrew Zajac reports.

In Nashville, Tennessee, U.S. District Judge Aleta Traugner ruled that the law governing such lending doesn't authorize investors to sue, Zajac writes. The pension funds have until September 17 to file an amended complaint, Zajac adds.

Barrons' Brendan Conway reported on the argument brought by the pension funds in more detail, writing:

"The court didn't buy the interpretation of certain key parts of the Investment Company Act of 1940…The pair of pensions sued early this year by asserting BlackRock and its partners violated certain parts of the act by keeping 40 percent of revenues generated by keeping 40 percent of revenues generated by the securities-lending activities of iShares ETFs. BlackRock said at the time it was 35 percent."

To read more, click here and here.

To read Reuters coverage, click here

Edited by: Casey Quinlan


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use