It will take more than high fees, from now on, to prove that an independent fund director is not independent.

A U.S. District Court judge in New York has thrown out a case against Scudder Kemper Investments, its closed-end Brazil Fund and the fund's directors, saying the investor who brought the suit failed to prove that the independent directors lost their independence because of the fees they received and other alleged business connections. Judge Robert Sweet, in a 37-page decision dated Nov. 18, said that the case had no merit and approved a request from a committee of the Brazil Fund's independent directors to dismiss the complaint.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.