U.S. Supreme Court building
WASHINGTON (Legal Newsline)-The U.S. Supreme Court on Monday asked the Obama administration to weigh in on whether the high court should hear Janus Capital Group Inc.'s appeal in a long-running securities class action lawsuit against it.
A group of plaintiffs sued the Denver-based mutual fund company in U.S. District Court in Colorado, alleging that Janus allowed some sophisticated traders to rapidly trade in and out of mutual funds much to the detriment of long-term shareholders.
The lawsuit was filed in 2003, after the company's shares dropped because of the alleged market-timing.
The case was dismissed at the district court level in 2005. But in 2009, the 4th Circuit U.S. Court of Appeals reversed the dismissal.
Today, the U.S. Supreme Court invited U.S. Solicitor General Elena Kagan, the federal government's lawyer at the Supreme Court, to file briefs in the case.
The case is Janus Capital Group v. First Derivative Traders 09-525.
From Legal Newsline: Reach staff reporter Chris Rizo at email@example.com.