announced on Thursday that an investor's lawsuit against the firm filed in late 2003 was voluntarily dropped.
The investor, Milton Pfeiffer, charged that Dreyfus' 12(b)-1 fees on closed funds were excessive.
Without going into details, a Dreyfus press release stated "Dreyfus successfully demonstrated to the plaintiff that it had complied with Rule 12b-1, under which fees may legitimately be charged to funds that are closed to new investors."
A Dreyfus spokesperson did not immediately return a call seeking comment.
Dreyfus also stated, "[s]ince it generally takes six years for the distributor to recoup the commissions it has paid out upfront, the distributor — when a fund closes — is entitled to be reimbursed for amounts it has advanced."
The suit was filed in a Manhattan federal court.
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