This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.
Abstract
This article explains recent developments in a common type of shareholder lawsuit, known as a “derivative” claim, focusing in particular on recent developments in Massachusetts law governing such claims. Massachusetts has adopted a rather unique mechanism for dealing with derivative claims, with broad implications for the mutual fund industry, as many U.S. mutual funds are organized as Massachusetts business trusts, and shareholder derivative suits are governed by state law. The article discusses how these developments and related, unanswered questions about the changes to Massachusetts law will affect the responses of mutual fund directors and their attorneys in responding to derivative claims initiated by the shareholders of their funds.
- Copyright © 2010 Ropes & Gray LLP. All rights reserved. Not to be reproduced or redistributed without permission.