Industry Groups Oppose Saba’s Right to Sue, Back High Court Bid

Private litigation by activist investors like Saba Capital Management LP puts businesses and closed-end funds in the crosshairs, and the right to bring such lawsuits should be reviewed by the Supreme Court, industry groups said in amicus briefs.

The Chamber of Commerce, Investment Company Institute, and Sifma weighed in to support closed-end funds’ high court bid to reverse a ruling in the US Court of Appeals for the Second Circuit, which upheld Saba’s right to sue over “control share” resolutions that limit investor votes.

The justices haven’t indicated whether they intend to grant the petition from FS Investments, Adams Funds, ...