A lawsuit that accused American Century Investment Management of charging mutual fund investors excessive fees was dropped by the plaintiffs, said James N. Benedict, a partner with Milbank, Tweed, Hadley & McCloy, the law firm that represented American Century.
Mr. Benedict said the lawsuit was among 12 filed against fund managers, all inspired by suggestions coming out of the market-timing suits pursued by New York Attorney General Eliot Spitzer that claimed retail investors were charged fees far higher than those charged to institutional investors. Mr. Benedict said courts have long held that institutional and mutual fund strategies are not equivalent.
American Century spokesman Chris Doyle said, "We are pleased to put this matter behind us."
The dismissal of the case against American Century should have a major impact on the other 11 pending cases, Mr. Benedict said.
Guy Burns, a lawyer for Johnson, Pope, Bokor, Ruppel & Burns, who represented the plaintiffs, couldn't immediately be reached for comment.
