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Ken Burdon Quoted in BoardIQ on 1940 Act Supreme Court Case Hearing
Partner Ken Burdon was quoted in a BoardIQ article titled, “Supreme Court Justices Weigh In on ‘Extremely Close’ CEF Showdown,” which examined the U.S. Supreme Court’s December 10, 2025 hearing on whether Section 47(b) of the Investment Company Act provides shareholders with an implied private right of action to rescind closed‑end fund contracts.
The case, expected to be decided in the first half of 2026, is of critical importance given its potential to incentivize litigation that could destabilize the regulatory structure for the multi-trillion-dollar funds industry if Saba prevails. The article highlights the Court's focus on the statutory text, particularly Congress’s 1980 revisions to Section 47(b), and explains how several lines of questioning from the Justices present the potential for a narrowly split ruling. Ken noted that Justice Kavanaugh "is key" and appeared “on the fence” during the argument, a signal of how close the outcome may be.
To read the full article, please click here (subscription required).