{"id":5606,"date":"2014-05-08T00:00:00","date_gmt":"2014-05-08T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/05\/blackrock_accused_yet_again_of"},"modified":"2022-07-22T08:50:53","modified_gmt":"2022-07-22T13:50:53","slug":"blackrock-accused-yet-again-of","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/blackrock-accused-yet-again-of\/","title":{"rendered":"Securities Lawsuits Accuse BlackRock Of Charging Exorbitant Investment Advisor Fees"},"content":{"rendered":"\n

Timothy C. Davidson, a Florida investment adviser, is suing BlackRock (BLK). He says the money manager and other defendants breached their fiduciary duty by charging disproportionately high investment advisory fees for the BlackRock Global Allocation Fund (MDLOX). He says that the excessive fees had \u201cno reasonable relationship\u201d to the services that the firm provided. <\/p>\n

Because of the alleged wrongdoing, Davidson contends, BlackRock Advisors was able to keep most of the benefits that stemmed from a growth in assets that were under management without properly sharing these with the fund or shareholders. The investment advisor also says that the fund\u2019s board did not behave \u201cconscientiously\u201d when it approved markups and fees and this breaches certain obligations under the Investment Company Act of 1940. <\/p>\n

The BlackRock Global Allocation Fund manages about $60 billion. Davidson said that a trust he helped establish owned $1 million of shares in the fund\u2019s institutional share class. (David helped form the trust after he bought a lottery ticket that won the Powerball in 2011.)<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Timothy C. Davidson, a Florida investment adviser, is suing BlackRock (BLK). He says the money manager and other defendants breached their fiduciary duty by charging disproportionately high investment advisory fees for the BlackRock Global Allocation Fund (MDLOX). He says that the excessive fees had \u201cno reasonable relationship\u201d to the services that the firm provided. Because […]<\/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":[3804,3740],"tags":[2706],"class_list":["post-5606","post","type-post","status-publish","format-standard","hentry","category-class-action-lawsuits","category-miscellaneous","tag-blackrock"],"yoast_head":"\nSecurities Lawsuits Accuse BlackRock Of Charging Exorbitant Investment Advisor Fees — Investor Lawyers Blog — May 8, 2014<\/title>\n<meta name=\"description\" content=\"Timothy C. Davidson, a Florida investment adviser, is suing BlackRock (BLK). 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