Pirundini v. J.P. Morgan Investment Management



A shareholder in the J.P. Morgan U.S. Large Cap Core Plus Fund filed a lawsuit in U.S. District Court for the Southern District of New York against the Fund adviser.  The complaint alleges that J.P. Morgan Investment Management charged excessive advisory fees to this captive mutual fund, compared to: (1) a third-party sub-advisory relationship; (2) another J.P. Morgan Fund with a similar investment strategy and portfolio holdings; and (3) the average advisory fee charged to comparable large cap funds.  Additionally, the complaint states that the 0.80% advisory fee contained no breakpoints (i.e., reduced fee levels) as the Fund grew to $10 billion in assets.

 

J.P. Morgan filed a motion to dismiss the case on June 21, 2017.  The plaintiff filed an opposition brief on August 4, and J.P. Morgan filed a reply brief on August 29.

  • J.P. Morgan Files Reply Brief on Motion to Dismiss
    J.P. Morgan filed its reply brief on August 29, 2017. J.P. Morgan argued that its fees were within a range of arm's length bargaining and in compliance with the Gartenberg factors and the standards articulated by the U.S. Supreme Court in Jones v. Harris Associates.
  • Plaintiff Files Brief Opposing the Motion to Dismiss
    The plaintiff filed a brief in opposition to the motion to dismiss on August 4, 2017. Her brief argued that J.P. Morgan charged fees far in excess of the average fees paid by comparable funds for the same services.
  • J.P. Morgan Files Motion to Dismiss
    On June 21, 2017, J.P. Morgan filed a motion to dismiss the case. J.P. Morgan argued that the plaintiff's fee comparisons do not show that the mutual fund at issue paid excessive advisory fees.
  • J.P. Morgan Shareholder Files Excessive Fee Complaint
    On April 27, 2017, a shareholder in the J.P. Morgan U.S. Large Cap Core Plus Fund filed an excessive fee lawsuit against J.P. Morgan Investment Management. The complaint alleges that the adviser charged higher fees to this captive mutual fund when compared to other large cap funds and sub-advisor arrangements. The complaint also states that the 0.80% advisory fee was not reduced as a percentage of assets as Fund assets grew to $10 billion.

A shareholder in the J.P. Morgan U.S. Large Cap Core Plus Fund filed a lawsuit in U.S. District Court for the Southern District of New York against the Fund adviser.  The complaint alleges that J.P. Morgan Investment Management charged excessive advisory fees to this captive mutual fund, compared to: (1) a third-party sub-advisory relationship; (2) another J.P. Morgan Fund with a similar investment strategy and portfolio holdings; and (3) the average advisory fee charged to comparable large cap funds.  Additionally, the complaint states that the 0.80% advisory fee contained no breakpoints (i.e., reduced fee levels) as the Fund grew to $10 billion in assets.

 

J.P. Morgan filed a motion to dismiss the case on June 21, 2017.  The plaintiff filed an opposition brief on August 4, and J.P. Morgan filed a reply brief on August 29.

Document Title: 
J.P. Morgan Files Reply Brief on Motion to Dismiss
Document Desc: 
J.P. Morgan filed its reply brief on August 29, 2017. J.P. Morgan argued that its fees were within a range of arm's length bargaining and in compliance with the Gartenberg factors and the standards articulated by the U.S. Supreme Court in Jones v. Harris Associates.
Document Title: 
Plaintiff Files Brief Opposing the Motion to Dismiss
Document Desc: 
The plaintiff filed a brief in opposition to the motion to dismiss on August 4, 2017. Her brief argued that J.P. Morgan charged fees far in excess of the average fees paid by comparable funds for the same services.
Document Title: 
J.P. Morgan Files Motion to Dismiss
Document Desc: 
On June 21, 2017, J.P. Morgan filed a motion to dismiss the case. J.P. Morgan argued that the plaintiff's fee comparisons do not show that the mutual fund at issue paid excessive advisory fees.
Document Title: 
J.P. Morgan Shareholder Files Excessive Fee Complaint
Document Desc: 
On April 27, 2017, a shareholder in the J.P. Morgan U.S. Large Cap Core Plus Fund filed an excessive fee lawsuit against J.P. Morgan Investment Management. The complaint alleges that the adviser charged higher fees to this captive mutual fund when compared to other large cap funds and sub-advisor arrangements. The complaint also states that the 0.80% advisory fee was not reduced as a percentage of assets as Fund assets grew to $10 billion.