A U.S. District Court jury in San Francisco found in favor of the three former independent mutual fund trustees being sued by Louis Navellier and his asset management firm, Navellier Investment Management of Reno, Nev.
The two year-old lawsuit charged that the fund trustees had breached their fiduciary duty when they terminated Navellier's investment management contract with the Navellier Series Trust Aggressive Small-Cap Fund in March 1997 and selected MFS of Boston to become the fund's interim investment manager. The suit also charged that the trustees' alleged wrongful actions harmed shareholders who consequently incurred adverse capital gains taxes. Shareholders of the fund later voted against MFS as the succeeding manager. The jury last week rejected all claims against the trustees.