What's At Stake In High Court Review Of Funds' Right To Sue (Law360)

The US Supreme Court agreed on June 30, 2025, to hear a major case about whether investment funds and their investors can sue each other in federal court over alleged violations of investment company law (decision expected by June 2026). The case, FS Credit Opportunities Corp. v. Saba Capital Master Fund Ltd., centers on whether a 1940s law gives private parties the right to sue, with federal appeals courts split on the issue since 2019. If the Supreme Court says yes, activist investors can continue challenging fund management decisions in court; if no, this common litigation tactic will be shut down and could limit other types of investment company lawsuits. 

Read our full analysis of this landmark case and its implications for investment fund litigation on Law360: “What's At Stake In High Court Review Of Funds' Right To Sue.”