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Fund Times

Supreme Court Knocks PIMCO

Plus, Fidelity Asia managers fired, tax-exempt munis under fire, and more.

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The Supreme Court has rebuffed bond giant PIMCO, allowing a $600 million class-action lawsuit to proceed. In doing so, the court affirmed an earlier ruling by Judge Richard A. Posner of the Seventh U.S. Circuit Court of Appeals. The lawsuit, filed by Richard Hershey and Breakwater Trading LLC in 2005, alleges that PIMCO manipulated the price of 10-year Treasury notes on the Chicago Board of Trade.

Courtney Goethals Dobrow does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.