LABORERS' LOCAL 265 PENSION FUND v. ISHARES TRUST

No. 13-6486.

769 F.3d 399 (2014)

LABORERS' LOCAL 265 PENSION FUND; Plumbers and Pipefitters Local No. 572 Pension Fund, Plaintiffs-Appellants, v. iSHARES TRUST et al., Defendants-Appellees.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: September 30, 2014.


Attorney(s) appearing for the Case

ARGUED: C. Mark Pickrell , The Pickrell Law Group, P.C., Nashville, Tennessee, for Appellants. Seth M. Schwartz , Skadden, Arps, Slate, Meagher & Flom LLP, New York, New York, for Appellees. ON BRIEF: C. Mark Pickrell , William G. Brown , The Pickrell Law Group, P.C., Nashville, Tennessee, James G. Stranch, III , J. Gerard Stranch IV , Michael G. Stewart , Michael J. Wall , Branstetter, Stranch & Jennings, PLLC, Nashville, Tennessee, Jenny L. Dixon , Robbins Arroyo LLP, San Diego, California, for Appellants. Seth M. Schwartz , Jeremy A. Berman , Skadden, Arps, Slate, Meagher & Flom LLP, New York, New York, John R. Jacobson , Milton S. McGee, III , Riley Warnock & Jacobson, PLC, Nashville, Tennessee, Bruce H. Schneider , Stroock & Stroock & Lavan LLP, New York, New York, for Appellees.

Before: BOGGS, CLAY, and GILMAN, Circuit Judges.


OPINION

RONALD LEE GILMAN, Circuit Judge.

An affiliate of the investment advisor for iShares mutual fund functions as a middleman between iShares and those who seek to borrow iShares's securities holdings, charging a fee of 35% for all net revenue received by iShares from such lending activity. The plaintiff shareholders challenge this fee as excessive under the Investment Company Act of 1940 (ICA), 15 U.S.C. &...

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