The
This is the first indication of where courts will go with these cases, William Birdthistle, assistant professor of law at
In the Ameriprise case, Gallus et al v. Ameriprise Financial, shareholders in 11 of the firms retail funds said they should not be charged higher fees than institutional clients. The court agreed with the plaintiffs that they were provided essentially the same services and advice as institutional clients.
In the Harris case, Jerry N. Jones et al v. Harris Associates, the Seventh Circuit agreed with a lower court on a standard that has been the norm for nearly 30 years, that the free market will determine that fees are not too high. But one judge dissented, saying the courts could compare fees in institutional and retail share classes of mutual funds.