{"id":5403,"date":"2013-02-18T00:00:00","date_gmt":"2013-02-18T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/02\/investment_fraud_lawsuit_again"},"modified":"2022-05-02T15:35:12","modified_gmt":"2022-05-02T20:35:12","slug":"investment-fraud-lawsuit-again","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/","title":{"rendered":"Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending"},"content":{"rendered":"\n<p>In a recent securities case, manager BlackRock is accused of self-dealing and pilfering from iShares exchange-traded funds\u2019 securities lending revenues. The plaintiffs are pension funds Plumbers and Pipefitters Local No. 572 Pension Fund of Nashville and Laborers\u2019 Local 265 Pension Fund of Cincinnati. They contend that a number of the iShares ETFs put money towards compensation that was  \u201cgrossly excessive\u201d to pay agents, including those with affiliations to the funds.  iShares Chairman Michael Latham and BlackRock President Robert Kapito are also defendants.<\/p>\n<p>The plaintiffs contend that BlackRock\u2019s iShares ETFs violated fiduciary duties and created an fee structure was excessive in order to avail of returns from securities lending that should have been paid to investors. They believe that iShares ETFs and officials at Blackrock perpetuated a scam that allowed them to get their hands on at minimum 40% of revenues from securities lending at cost to investors. <\/p>\n<p>However, BlackRock, which is the largest ETF manager, is arguing that the securities case is without merit. The company claims that its program for securities lending has generated returns that exceed the average to ETF shareholders and it believes that its lending policies shouldn\u2019t be compared with others in its field. BlackRock has pointed out that while it has profited from the program, investors do get their high returns \u201cover time.\u201d It intends to fight the ETF lawsuit. <\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/\"  title=\"Continue Reading Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In a recent securities case, manager BlackRock is accused of self-dealing and pilfering from iShares exchange-traded funds\u2019 securities lending revenues. The plaintiffs are pension funds Plumbers and Pipefitters Local No. 572 Pension Fund of Nashville and Laborers\u2019 Local 265 Pension Fund of Cincinnati. They contend that a number of the iShares ETFs put money towards [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3781,3741],"tags":[2596],"class_list":["post-5403","post","type-post","status-publish","format-standard","hentry","category-investment-advisers","category-securities-fraud","tag-exchange-traded-funds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending &#8212; Investor Lawyers Blog &#8212; February 18, 2013<\/title>\n<meta name=\"description\" content=\"In a recent securities case, manager BlackRock is accused of self-dealing and pilfering from iShares exchange-traded funds\u2019 securities lending revenues. &#8212; February 18, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending &#8212; Investor Lawyers Blog &#8212; February 18, 2013\" \/>\n<meta name=\"twitter:description\" content=\"In a recent securities case, manager BlackRock is accused of self-dealing and pilfering from iShares exchange-traded funds\u2019 securities lending revenues. &#8212; February 18, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending &#8212; Investor Lawyers Blog &#8212; February 18, 2013","description":"In a recent securities case, manager BlackRock is accused of self-dealing and pilfering from iShares exchange-traded funds\u2019 securities lending revenues. &#8212; February 18, 2013","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/","twitter_card":"summary_large_image","twitter_title":"Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending &#8212; Investor Lawyers Blog &#8212; February 18, 2013","twitter_description":"In a recent securities case, manager BlackRock is accused of self-dealing and pilfering from iShares exchange-traded funds\u2019 securities lending revenues. &#8212; February 18, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending","datePublished":"2013-02-18T06:00:00+00:00","dateModified":"2022-05-02T20:35:12+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/"},"wordCount":408,"keywords":["Exchange Traded Funds"],"articleSection":["Investment Advisers","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/","url":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/","name":"Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending &#8212; Investor Lawyers Blog &#8212; February 18, 2013","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2013-02-18T06:00:00+00:00","dateModified":"2022-05-02T20:35:12+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"In a recent securities case, manager BlackRock is accused of self-dealing and pilfering from iShares exchange-traded funds\u2019 securities lending revenues. &#8212; February 18, 2013","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/investment-fraud-lawsuit-again\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Investment Fraud Lawsuit Against BlackRock Over Exchange-Traded Funds Could Shed More Light on Securities Lending"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1p9","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=5403"}],"version-history":[{"count":5,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5403\/revisions"}],"predecessor-version":[{"id":27094,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/5403\/revisions\/27094"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=5403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=5403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=5403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}