Is a mutual fund company responsible for the statements made in a prospectus for one of its funds? Is the manager of the fund? Possibly not, in either case.
The U.S. Supreme Court has ruled that mutual fund shareholders have a limited right to sue mutual fund companies or fund managers for fraud. In Janus Capital Group vs. First Derivative Traders, the court ruled 5-4 that mutual fund shareholders could not sue Janus for misleading information found in a prospectus.