Investment Company Institute

Rule Changes

Welcomed the ruling on behalf of the fund industry

For decades, investors could sue a mutual fund directly to undo contracts that broke federal fund law. On June 11, 2026, the Supreme Court closed that door. By a 6-3 vote, the justices ruled that ordinary investors have no right to sue under the Investment Company Act of 1940, the law that governs mutual funds and similar pooled investments.

Updated Jun 11