The U.S. Supreme Court yesterday ruled in favor of the mutual fund industry in a case involving a company’s responsibility for statements made in prospectuses, Investment News reported.

The suit, Janus Capital Group v. First Derivative Traders, stems from the 2003 market-timing lawsuits in which a number of mutual fund companies, including Janus Capital Group Inc., allowed certain investors to make rapid trades of shares of their funds to the detriment of longer-term investors.

Janus settled the charges with regulators, but First Derivatives, a shareholder of Janus, claimed the parent company should be held liable for statements made in its fund prospectuses. The Supreme Court ruled in favor of Janus, saying it was up to Congress, not the courts, to expand the terms of liability in the securities industry.

To read the full article in Investment News, click here.