Edward Jones, a nationwide brokerage house, is facing allegations that the company failed to disclose nearly $100 million it received from seven mutual funds as part of revenue-sharing agreements. Brokerage houses receive "bonuses" from mutual fund companies when a client purchases a fund the firm recommends. While revenue-sharing agreements are legal, the National Association of Securities Dealers demands that brokerage companies disclose these profits to clients.
According to reports, Edward Jones brokers recommended certain funds anticipating large incentives in return. Lawsuits filed against the firm claim brokers only endorsed the funds because of the bonuses, not because of any potential profit the client stood to gain.
The following seven funds are under review:
Lord Abbett Funds
American Funds
Federated Funds
Goldman Sachs Funds
Hartford Mutual Funds
Putnam Funds
Van Kamp Funds
If you have been victimized by securities fraud because of Edward Jones, it may be important to contact an attorney who can help you protect your legal rights. Please keep in mind that there may be time limits within which you must commence suit.
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