BlackRock is victorious in lending lawsuit
29 August 2013 Tennessee
Image: Shutterstock
A judge has dismissed a lawsuit against BlackRock that accused the asset management firm of setting up an excessive fee structure “designed to loot securities lending returns properly due to iShares investors.”
The original complaint was filed on 18 January 2013, and claimed that a number of BlackRock’s US-listed iShares exchange-traded funds (ETFs) “systematically violated their fiduciary duties, setting up an excessive fee structure designed to loot securities lending returns properly due to iShares investors".
The Laborers' Local 265 Pension Fund of Cincinnati and the Plumbers and Pipefitters Local No. 572 Pension Fund of Nashville filed the suit in Tenneessee’s Middle District Court.
BlackRock president Robert Kapito and iShares chairman Michael Latham are named as defendants in the suit, which alleges that they, alongside the ETFs, ran a scheme to take at least 40 percent of lending revenue.
A BlackRock statement said at the time that the complaint was without merit, adding that they would "contest it vigorously".
The original complaint was filed on 18 January 2013, and claimed that a number of BlackRock’s US-listed iShares exchange-traded funds (ETFs) “systematically violated their fiduciary duties, setting up an excessive fee structure designed to loot securities lending returns properly due to iShares investors".
The Laborers' Local 265 Pension Fund of Cincinnati and the Plumbers and Pipefitters Local No. 572 Pension Fund of Nashville filed the suit in Tenneessee’s Middle District Court.
BlackRock president Robert Kapito and iShares chairman Michael Latham are named as defendants in the suit, which alleges that they, alongside the ETFs, ran a scheme to take at least 40 percent of lending revenue.
A BlackRock statement said at the time that the complaint was without merit, adding that they would "contest it vigorously".
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