The mutual fund industry is now mulling the implications of the recent courtroom encounter between money manager Louis Navellier, of Navellier Investment Management of Reno, Nev., and three independent fund trustees.

The trustees, who emerged victorious, were appointed watchdogs to oversee the Navellier Series Trust Aggressive Small-Cap Fund, which was launched in 1993. In March 1997, the three trustees decided to allow the investment management contract with Navellier to expire because, they contended, Navellier was unwilling to provide them with information necessary for them to carry out their trustee responsibilities. The board subsequently handed the fund's advisory contract to MFS of Boston, pending shareholder approval.

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