KBJ Critiques Barrett's Disdain for Congressional Authority

WHO:

Slate Magazine - Justice Ketanji Brown Jackson criticized Justice Amy Coney Barrett.

Newsweek - Boaz Weinstein is the founder and chief investment officer of Saba Capital.

WHAT:

Slate Magazine - The Supreme Court ruled 6–3 in FS Credit v. Saba Capital, limiting the ability of private parties to sue under the Investment Company Act.

Newsweek - The ruling clarified that Section 47(b) of the Investment Company Act does not create an implied private right of action for rescission of contracts.

Newsweek - The decision affects investment funds, shareholders, and activist investors, potentially curbing future lawsuits against fund governance rules.

Newsweek - Justice Barrett stated that the dissent relied on a "fictional premise" regarding the statute's interpretation.

WHERE:

Newsweek - The case involved the Investment Company Act, which governs investment funds in the United States.

WHEN:

Slate Magazine - The Supreme Court's decision occurred on a Thursday.

Newsweek - The ruling was made in the case FS Credit Opportunities Corp. v. Saba Capital Master Fund.

WHY:

Slate Magazine - Justice Jackson argued that the majority's decision reflects a contempt for Congress and undermines democracy by prioritizing judicial preferences over legislative intent.

Newsweek - The majority emphasized that Congress typically specifies when private parties can sue under federal law, which was not done in this case.

HOW:

Slate Magazine - The majority opinion, written by Justice Barrett, stated that courts must look only at the text of the statute and ignore legislative history.

Newsweek - The ruling reversed lower court decisions that had allowed Saba Capital to sue, clarifying that enforcement authority primarily rests with the Securities and Exchange Commission.

(UPDATED June 11, 2026 23:29 UTC)

In a significant ruling, the Supreme Court decided six to three in the case of FS Credit Opportunities Corp. v. Saba Capital Master Fund, limiting private parties' ability to sue under the Investment Company Act. Justice Ketanji Brown Jackson criticized Justice Amy Coney Barrett, who authored the majority opinion, for suggesting that the dissent relied on a "fictional premise" regarding the statute's interpretation. The decision clarified that Section 47(b) does not create an implied private right of action for rescission of contracts, potentially affecting investment funds, shareholders, and activist investors by curbing future lawsuits against fund governance rules.