U.S. Supreme Court Dismisses Private Lawsuits Under Key Securities Law

On June 11, the U.S. Supreme Court backed a group of investment funds associated with BlackRock and other asset management companies, dismissing certain lawsuits brought by private plaintiffs under a key federal securities law. The justices voted 6-3 to overturn a lower court's ruling, which had previously allowed the Saba Capital Master Fund, a hedge fund, to sue under the Investment Company Act of 1940 to invalidate fund bylaws that restricted the voting rights of activist shareholders.