U.S. Court leaves fund investors hanging

To be misled by a prospectus into buying a mutual fund, an investor actually would have to read fund documents.

But for people who actually go through a fund’s paperwork and use it in making decisions, being misled would seem the fault of the people who put it together — namely the fund’s management and its parent company or sponsor.

The high court has given investors one more reason to ignore a fund’s documents, ruling that a fund’s investment adviser may not be sued for securities fraud due to misstatements made in a fund’s prospectus….

http://www.marketwatch.com/story/supreme-court-leaves-fund-investors-hanging-2011-06-19?mod=MWCommentaryandBlogs&mod=marketwatch