Industry groups oppose Saba’s right to sue and support the Supreme Court bid

Private lawsuits by activist investors like Saba Capital Management LP are putting corporations and closed-end funds in the crosshairs, and the right to file such lawsuits should be reviewed by the Supreme Court, industry groups say in amicus briefs.

The Chamber of Commerce, the Investment Company Institute and Sifma supported the Supreme Court of closed-end funds to a pronunciation in the United States Court of Appeals for the Second Circuit, which affirmed Saba’s right to sue over “control share” resolutions that limit investors’ votes.

The judges have not indicated whether they intend to grant the petition from FS Investments, Adams Funds, etc.