Judge Upholds Suit Against Edward Jones

A Sacramento County Superior Court judge on Monday tentatively rejected a move by Edward Jones & Co. to scuttle California Atty. Gen. Bill Lockyer’s lawsuit against the brokerage over its mutual fund sales practices.

The brokerage had contended that the suit was preempted by federal law, but Judge Brian Van Kamp tentatively rejected that argument and scheduled a hearing for today. Lockyer claims that Jones violated state corporate securities law by failing to adequately disclose deals that gave its brokers incentives to sell certain mutual funds.

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Josh Friedman