US Supreme Court to Take Up Controlling-Investor Challenges (1)

The US Supreme Court will consider whether activist investors can use an 85-year-old law to challenge corporate moves bolstering controlling shareholders, in a case being closely watched by some of Wall Street’s biggest investment funds.

In a setback to hedge fund manager Boaz Weinstein, the court agreed to review a decision allowing a lawsuit against closed-end fund provider FS Credit Opportunities Corp. and others, including BlackRock Inc., the world’s largest asset manager.

The case comes to the justices after Weinstein’s Saba Capital Master Fund successfully argued that the Investment Company Act of 1940 allowed it to sue the ...