Saxe v. Brady

Seitz, Chancellor:

Plaintiffs became investors in 1952 in Fundamental Investors, Inc. ("Fund”), a Delaware corporation registered as an open-end investment company under the provisions of the Investment Company Act of 1940. They have brought this action on *476its behalf against its directors, investment adviser, and parent of its investment adviser.

Plaintiffs charge that the fees paid to Fund’s investment adviser pursuant to a contract whereby the latter receives annually an amount equal to of 1% of the average daily net assets of the Fund are “unreasonable, excessive and an illegal waste and…