ETY Board exempts control share acquisitions after court ruling invalidates bylaw

Eaton Vance Tax-Managed Diversified Equity Income Fund

Massachusetts Superior Court ruled Jan 23, 2023 that the Control Share By-Law violates Section 18(i) of the Investment Company Act, granting partial summary judgment to Saba Capital.
Board voted Jan 26, 2023 to exempt all prior and new purchases from the bylaw on a going-forward basis.
Court denied Saba's claim that the Board breached fiduciary duty; litigation is ongoing with possible appeal after remaining issues are litigated.
The bylaw was originally adopted in August 2020 to protect retail shareholders from activist hedge funds like Saba.

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