Davidson v. BlackRock Advisors LLC



A shareholder with more than $1 million invested in the BlackRock Global Allocation Fund filed a class action complaint against BlackRock in U.S. District Court in New Jersey.  This lawsuit asserts that the advisory fee rate charged to the Fund by BlackRock is excessive for the value of the work performed.

 

The lawsuit also alleges that the subadvisory fees paid to sub-advisers affiliated with BlackRock are excessive in that the overall subadvisory fee is significantly higher than the fees negotiated at arm's length by BlackRock with other clients for the same or substantially similar investment management services.

 

The plaintiff also claims that the fee arrangements established by BlackRock do not adequately decrease as the Fund grows larger, and resultant cost savings through economies of scale are not being passed onto the Fund and its shareholders.

 

On May 22, 2014, this case was consolidated with the Clancy, Foote, and Fox subadviser cases into In re BlackRock Mutual Funds Advisory Fee Litigation.

  • Shareholder Files Class Action Lawsuit Against BlackRock
    On May 6, 2014, a shareholder with more than $1 million invested in the BlackRock Global Allocation Fund filed a class action complaint under the Investment Company Act against BlackRock. The case was filed in U.S. District Court in New Jersey. The lawsuit asserts that advisory and subadvisory fees being charged to the Fund do not reflect the work performed and are higher than what BlackRock is charging in similar arm's length transactions.

A shareholder with more than $1 million invested in the BlackRock Global Allocation Fund filed a class action complaint against BlackRock in U.S. District Court in New Jersey.  This lawsuit asserts that the advisory fee rate charged to the Fund by BlackRock is excessive for the value of the work performed.

 

The lawsuit also alleges that the subadvisory fees paid to sub-advisers affiliated with BlackRock are excessive in that the overall subadvisory fee is significantly higher than the fees negotiated at arm's length by BlackRock with other clients for the same or substantially similar investment management services.

 

The plaintiff also claims that the fee arrangements established by BlackRock do not adequately decrease as the Fund grows larger, and resultant cost savings through economies of scale are not being passed onto the Fund and its shareholders.

 

On May 22, 2014, this case was consolidated with the Clancy, Foote, and Fox subadviser cases into In re BlackRock Mutual Funds Advisory Fee Litigation.

Document Title: 
Shareholder Files Class Action Lawsuit Against BlackRock
Document Desc: 
On May 6, 2014, a shareholder with more than $1 million invested in the BlackRock Global Allocation Fund filed a class action complaint under the Investment Company Act against BlackRock. The case was filed in U.S. District Court in New Jersey. The lawsuit asserts that advisory and subadvisory fees being charged to the Fund do not reflect the work performed and are higher than what BlackRock is charging in similar arm's length transactions.