Fidelity Charitable Can’t Duck $100M Stock Donation Lawsuit

The owners of San Francisco investment adviser Ascend Capital advanced a lawsuit accusing Fidelity Investments Charitable Gift Fund of mishandling their $100 million stock-based donation.

Emily and Malcolm Fairbairn brought valid claims of misrepresentation and negligence against the facilitator of charitable donations, a federal judge in California ruled Nov. 28. The judge also rejected Fidelity Charitable’s argument that only state attorneys general—and not individual donors—have standing to sue over mismanagement of charitable funds.

The case involves “donor advised funds,” which allow donors to contribute assets to nonprofit organizations like Fidelity Charitable while maintaining control over how the funds are distributed. ...