U.S. Supreme Court to Consider Private Right of Action Under the Investment Company Act of 1940

The ICA regulates mutual funds, exchange-traded funds, closed-end funds, and other registered investment companies. However, in 2019, the Second Circuit, in Oxford University Bank v. Lansuppe Feeder, LLC,[1] recognized an implied private right of action under Section 47(b) for the first time. In contrast, the Third and Ninth Circuits previously rejected finding a private right of action under Section 47(b). On September 3, 2025, the United States and U.S. Chamber of Commerce weighed in and filed amicus briefs in support of the fund petitioners seeking to challenge the private right of action. The government agreed with the funds that no private right of action existed under Section 47(b).