Lapidus

Cary and Denise Lapidus, trustees of the Cary and Denise Lapidus Living Trust, appeal the district court’s dismissal of their class action against the Robertson, Stephens Investment Trust 1 alleging violations of the Investment Company Act, 15 U.S.C. §§ 80a-13(a)(2), 13(a)(3), and 18(f), in connection with the trust’s management of a mutual fund. The plaintiffs seek to recover losses sustained by the mutual fund as a result of short sales made without shareholder approval, allegedly in violation of the registration statement filed with the Securities and Exchange Commission. The district court concluded that the plaintiffs lacked standing to bring a direct action because they did not allege an injury separate and distinct from that suffered by shareholders generally. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We affirm in part, reverse in part and remand.

I.

The Robertson, Stephens Investment Trust (“trust”) is a Massachusetts business trust and open-end series investment company which offers shares in eleven mutual funds. Each fund is a series of the trust. The trust is registered under the Investment Company Act of 1940, 15 U.S.C. § 80a-1. The Cary and Denise Lapidus…