Supreme Court Curbs Private Suits in 6-3 Investment Act Ruling as Barrett, Jackson Clash
Updated
Updated · ms.now · Jun 11
Supreme Court Curbs Private Suits in 6-3 Investment Act Ruling as Barrett, Jackson Clash
3 articles · Updated · ms.now · Jun 11
Summary
A 6-3 Supreme Court majority held that the Investment Company Act does not let private parties sue to rescind contracts under Section 47(b), cutting off a route used by activist investors.
Amy Coney Barrett wrote that the statute’s text and structure do not imply a private right of action, saying courts cannot create one when Congress did not clearly authorize it.
Ketanji Brown Jackson, joined fully by Sonia Sotomayor, said the court ignored text, structure and history showing Congress expected private suits; Elena Kagan agreed in part but rejected Jackson’s broader reliance on legislative history.
The FS Credit Opportunities v. Saba Capital decision reverses lower-court wins for Saba and reinforces a textualist approach that leaves enforcement of much of the 86-year-old law to regulators such as the SEC.