Supreme Court Holds That Investment Company Act Does Not Authorize Lawsuits by Private Parties to Rescind Contracts That Allegedly Violate It

On June 11, 2026, the Supreme Court held in a 6-3 decision that Section 47(b) of the Investment Company Act of 1940, as amended (the “Act”) does not create a cause of action allowing private parties to sue for rescission of contracts that allegedly violate the Act.

For a detailed summary of the ruling, see the firm’s Decision Alert linked here.