A decision was overturned earlier this month in the lawsuit Green v. Fund Asset Management, in which shareholders in seven Merrill Lynch funds have sued the company for engaging in fraud with regard to management fees.

The original decision, entered in the U.S. District Court for New Jersey, granted a motion by the defendants which contends that the plaintiff’s state claims could not be heard in federal court. On March 16, the U.S. Court of Appeals for the 3rd Circuit reversed the decision allowing the state claims to be heard in the federal case. That could prove significant for fund firms if claims from states with stricter fraud standards are brought into federal court.

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