BLOOMBERG --
U.S. District Judge Aleta Trauger in Nashville,
Without congressional intent expressed in a statute, a cause of action does not exist and the courts may not create one, Trauger wrote.
The suit was filed in January by Laborers Local 265 Pension Fund, based in Cincinnati, and Plumbers and Pipefitters Local No. 572 Pension Fund, of Nashville.
Investment funds with holdings in stocks or other securities can earn more by lending out their holdings to borrowers, including short sellers, those betting the value of a security will fall. Investors who lend out the securities divide the proceeds with a
We are pleased with the courts decision, Christine Hudacko, a spokeswoman for New York-based BlackRock, said in an e-mailed statement.
The pension funds alleged that BlackRock affiliates collected 40 percent of revenue earned from securities lending transactions as compensation.
Trauger gave the pension funds until September 17 to file an amended complaint.
Davia Hayward, a spokeswoman for Robbins Arroyo LLP, the pension funds law firm, didnt immediately reply to a phone message requesting comment.
The case is Laborers Local 265 Pension Fund v. iShares Trust, 13-cv-00046, U.S. District Court, Middle District of Tennessee (Nashville).