A U.S. district court in Boston has invalidated Signature Financial Group's patent on "hub-and-spoke" mutual fund structures, paving the way for more competitors to market the unusual approach to fund administration.

On March 26, Judge Patricia B. Saris of U.S. District Court for the District of Massachusetts ruled that Signature's exclusive claim to set up hub-and-spoke mutual funds was "invalid and unenforceable."

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