00:00So the Supreme Court has shielded funds from some investor lawsuits, essentially ruling that an
00:0485-year-old federal statute doesn't authorize shareholders to sue over bylaws and management
00:10decisions. This ruling from the court came down six to three, blocking activist investors from
00:15suing 11 closed-door funds. That includes some affiliated with FS Credit Opportunities Corp
00:21and BlackRock. Now, the suing investors were led by Saba Capital, run by hedge fund manager
00:27Boaz Weinstein, that the heart of this was whether investors could basically sue funds over any
00:33management decisions under what's known as the Investment Company Act of 1940. Saba was challenging
00:39a move by FS Credit Opportunities Corp that would make it harder for activist investors to essentially
00:44gain a foothold, since the fund was using a state law to allow controlling shareholders the right
00:49to block other investors from acquiring a more than 10 percent voting share. Matt, despite this
00:54decision, experts do say that this won't entirely strip activist investors of tools to sway
00:59how funds operate through voting or other means. But it was definitely one that we are watching
01:04closely, since we actually know that this is a ruling that favors the Trump administration's view
01:09and how the SEC operates moving forward.
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