Securities Regulation- Federal Courts-Private Rights of Action Under the Investment Company Act of 1940

Authors

Lee D. Powar, University of Michigan Law SchoolFollow

Abstract

Two actions for damages were brought against officers and directors of a mutual investment fund alleging violations of the Investment Company Act of 1940. These actions, by the fund itself and by a stockholder on behalf of the fund, were consolidated in a federal district court. The court denied defendant's motion to dismiss for want of federal jurisdiction. On an interlocutory appeal by the non-affiliated directors, held, reversed. The Investment Company Act of 1940 does not expressly or by implication create a private right of action cognizable in the federal courts against non-affiliated directors. Brouk v. Managed Funds, Inc., 286 F.2d 901 (8th Cir. 1961), vacated and remanded for dismissal as moot, 82 Sup. Ct. 878 (1952) .

Recommended Citation

Lee D. Powar, Securities Regulation- Federal Courts-Private Rights of Action Under the Investment Company Act of 1940, 60 Mich. L. Rev. 655 (1962).
Available at: https://repository.law.umich.edu/mlr/vol60/iss5/9