Last year, the
But now, the
Its very significant because mutual funds are now the investment vehicle of choice for most American investors, said James Cox, a law professor at
The investors said Oakmark should charge retail investors the same lower fees that it charges institutional investors, arguing that it provides the same services to both investor classes. The investors further charged that as the firms assets rose, Oakmark failed to pass along economies of scale. But Oakmark, and other fund companies in the past, countered that retail investors demand more services than institutional investors.
David Frederick, the attorney for the plaintiffs, said they are grateful the high court is examining the matter.