A shareholder of the EuroPacific Growth Fund, part of the American Funds, initiated a lawsuit against the investment adviser of this Fund, Capital Research & Management Company, and the distributor of Fund shares, American Funds Distributors, Inc. This lawsuit seeks to recover for the Fund excessive and disproportionate Rule 12b-1 fees and investment advisory fees paid by the Fund to the defendants, in violation of their fiduciary duties under Section 36(b) of the Investment Company Act of 1940.
This lawsuit was filed in the U. S. District Court for the Central District of California. After briefs were filed on a Motion to Dismiss the case by the defendants, on April 16, 2009, the Court stayed the proceedings in this lawsuit until a resolution of a related case, In Re American Mutual Funds Fee Litigation. On February 19, 2010, the Court ordered a continuation of the stay until the later of: (1) the completion of the appeal to the Ninth Circuit Court of Appeals on the dismissal of the In Re American Mutual Funds case; and (2) a decision by the U.S. Supreme Court in Jones v. Harris Associates.
On January 9, 2012, the plaintiff filed a Joint Stipulation with the Court to voluntarily dismiss this case, without prejudice.