Harvard Management Co. filed a counterclaim against Templeton Asset Management, the Templeton China World Fund and Templeton Dragon Fund. This comes one week after Templeton filed suit in federal court against Harvard Management, which runs the $18 billion Harvard University Endowment, Boston, alleging securities law violations in connection with Harvard’s move to terminate the management teams of the China World and Dragon funds.
The counterclaim, filed in U.S. District Court in Baltimore, alleges that Templeton filed "false or misleading” proxy statements. In addition, Harvard alleges the firm breached its fiduciary duties to shareholders by voting to open-end the China World Fund. "Any suggestion that the boards and management have not acted in the best interest of shareholders is ludicrous,” said a Templeton spokeswoman.
The court will hear motions for preliminary injunctions in the case on March 7.
