The Supreme Court rejected a controversial lower-court decision that
would have severely limited investors' ability to sue mutual-fund firms
over the fees they charge.
In a widely watched case, the court ruled that a lower court went too
far in deciding mutual-fund managers can't be held liable for charging
excessive fees unless there is fraud involved.
The justices instead kept in place a standard long used by other
federal courts to evaluate lawsuits that claim fund fees are excessive.
That standard favors the industry and is difficult for investors to
overcome, but gives judges some room to scrutinize the fee-setting
process even in the absence of fraud.