A New York federal court judge has dismissed the second of five cases which challenge the independence of mutual fund directors based on their allegedly high pay.
Shareholder T. Robert Verkouteren failed to marshal "any evidence" that the pay that directors of the BlackRock Funds received destroyed their independence and left them in the control of the funds' advisory company, U.S. District Court Judge Whitman Knapp of New York said in a 12-page decision dated Feb. 4. Knapp, occasionally using sharp language, dismissed the case which Verkouteren filed against BlackRock Financial Management. But, the judge, as a matter of routine, gave Verkouteren 30 days to add further detail to his accusations. If Verkouteren does, the case could be re-opened.