Mutual fund attorneys are reviewing the risk disclosures in key SEC filings for the funds they advise because of what appears to be a unique case making its way through federal court in Nashville, Tenn.

A shareholder in the ESC Strategic Value Fund has filed a class action suit against fund adviser SunTrust Equitable Securities Corp. of Nashville because - after repeatedly urging investors to take a long-term view - SunTrust Equitable recommended the fund liquidate its assets less than two years after it opened.

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.