A federal court judge has dismissed a lawsuit against T. Rowe Price Associates, giving support to mutual fund industry executives' contentions that fund directors do not lose their independence by serving on more than one mutual fund board.

U.S. District Court Judge Andre M. Davis threw out the suit which David Migdal and Linda B. Rohrbaugh filed against T. Rowe Price, Rowe Price-Fleming International, three T. Rowe Price subsidiaries and fund directors. The judge ruled that the investors could not attack the fees which T. Rowe Price charges merely by saying that fund directors lost their independence because they served on more than one board in the T. Rowe Price fund complex. The law presumes directors are independent, Davis said.

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