Someone Explain This To Me

The Supreme Court just handed down a decision in Jones v. Harris, where investors sued brokers for excessive fees.

CNN has an article titled, “Mutual fund investors win Supreme Court victory,” and Reuters has an article titled, “Supreme Court hands victory to mutual fund industry.”

It appears that the court rejected the lower court ruling that, “That the competition that has developed among mutual funds in recent years is sufficient protection for mutual fund investors,” which would be construed as a win for investors, but retained the standard of, “fees are excessive only when they are so high they could not be the result of arm’s-length bargaining and bear no reasonable relationship to the services provided.

It sounds to me like they split the baby, which seems to be the SCOTUSblog’s take on this too, which would imply to me that we will see this back before the court in the next decade or so.

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