Simpson Thacher Attorneys Author Article on U.S. Supreme Court Decision in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd.
Partners Ryan Brizek, Ken Burdon and Alan Turner, and Counsel Angela Jaimes authored an article titled, “Justices' ICA Ruling Provides Certainty For Regulated Funds,” which was published by Law360. The article discussed the recent 6-3 U.S. Supreme Court decision in FS Credit Opportunities Corp. v. Saba Capital Master Fund Ltd., which determined that Section 47(b) of the Investment Company Act does not provide investors with a private right of action to rescind contracts that allegedly violate the ICA. The article further outlined key takeaways for registered fund professionals, including that while the ruling forecloses private claims under Section 47(b) it does not prevent private claims under Section 36(b) and for short-swing profits, as well as SEC enforcement actions.
To read the full article, please click here (subscription required).