Justices seem receptive of private suits against investment companies
In a recent hearing regarding FS Credit Opportunities Corp. v. Saba Capital Master Fund, the Supreme Court justices exhibited a surprising openness to allowing private parties to sue investment companies under the Investment Company Act of 1940. This case marks a significant moment as it challenges the traditional skepticism the Court has shown towards implied rights of action in previous decades. The justices’ consideration of the statute’s provisions suggests a potential shift in the legal landscape governing investment companies and their accountability. Arguments Presented Before the Court The arguments presented by Shay Dvoretzky, representing the … Read more