Claim of Market-Timing Trades In the Shares of a Mutual Fund
In Potter v. Janus Investment Fund, 483 F. Supp. 2d 692 (S.D. Ill. 2007), Judge Herndon held that where the "gravamen" of a plaintiff's complaint is that negligence and breaches of fiduciary duty by defendants have allowed market-timing traders to engage in a pattern of market-timing trades in the shares of a mutual fund, to the detriment of long-term shareholders, the fact that the plaintiffs have chosen to characterize their claims in terms of negligence and breach of fiduciary duty under state law is not enough to avoid the preclusive effect of the Securities Litigation Act. 483 F. Supp. 2d at 702.