BlackRock is facing a proposed class-action lawsuit, filed on July 13, 2026, accusing the world's largest asset manager of using improper accounting to inflate the net asset values (NAVs) of more than 70 equity mutual funds. The complaint, lodged in New York state court, alleges this practice resulted in shareholders paying excessive management fees and incurring larger tax liabilities.
The lawsuit claims BlackRock improperly treated accrued dividend income and realized capital gains as fund assets, even when those amounts were legally required to be distributed to shareholders. This alleged overstatement of fund values meant investors received fewer shares for their money while the asset base for calculating BlackRock's management fees was artificially increased. The suit seeks unspecified damages for investors over the last three years, alleging violations of the Securities Act of 1933.