Counsel for American Century retained Cornerstone Research in an action alleging that the investment management company had charged excessive fees to its mutual fund customers.
Retained by Milbank, Tweed, Hadley & McCloy
Counsel for American Century retained Cornerstone Research in an action alleging that the investment management company had charged excessive fees to its mutual fund customers. We worked with two experts: Christine Hammer, a senior advisor with Cornerstone Research, and Professor Laura Starks bodog online casino University of Texas.
The dismissal eliminated claims involving several hundred million dollars.
Ms. Hammer reviewed American Century’s cost accounting system and the reasonableness bodog online casino company’s profitability. Professor Starks evaluated the differences between retail and institutional markets. Both experts’ findings were integral to the termination bodog online casino case, according to comments in the stipulation of dismissal by the court:
Plaintiffs have concluded that, if the case were tried, the court would likely determine that the compensation defendant received for managing the funds was fair and reasonable in light bodog online casino surrounding circumstances and that the fees are not disproportionate to the services rendered. Therefore, plaintiffs have concluded that the defendant has not violated its fiduciary duties under Section 36(b) bodog online casino Investment Company Act of 1940…
Just before the trial was to begin, plaintiffs agreed to a dismissal with prejudice and without costs. The dismissal eliminated claims involving several hundred million dollars in annual fees associated with more than billion in managed assets. bodog online casino was the first excessive fee case to reach resolution.