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 鈥渄esigned to loot securities lending returns properly due to iShares investors.鈥�
The original complaint was filed on 18 January 2013, and claimed that a number of BlackRock鈥檚 US-listed iShares exchange-traded funds (ETFs) 鈥渟ystematically violated their鈥╢iduciary duties, setting up an excessive fee structure designed鈥� to loot securities lending returns properly due to iShares鈥╥nvestors".
The Laborers' Local 265 Pension Fund of 鈥–incinnati and the Plumbers and Pipefitters Local No. 572 鈥≒ension Fund of Nashville filed the suit in Tenneessee鈥檚 Middle District Court.
BlackRock president Robert Kapito and iShares chairman 鈥∕ichael 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鈥� lending revenue.
A BlackRock statement said at the time that the 鈥╟omplaint was without merit, adding that they would "contest it 鈥╲igorously".
The original complaint was filed on 18 January 2013, and claimed that a number of BlackRock鈥檚 US-listed iShares exchange-traded funds (ETFs) 鈥渟ystematically violated their鈥╢iduciary duties, setting up an excessive fee structure designed鈥� to loot securities lending returns properly due to iShares鈥╥nvestors".
The Laborers' Local 265 Pension Fund of 鈥–incinnati and the Plumbers and Pipefitters Local No. 572 鈥≒ension Fund of Nashville filed the suit in Tenneessee鈥檚 Middle District Court.
BlackRock president Robert Kapito and iShares chairman 鈥∕ichael 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鈥� lending revenue.
A BlackRock statement said at the time that the 鈥╟omplaint was without merit, adding that they would "contest it 鈥╲igorously".
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