Lockyer Wins Decision in Edward Jones Suit
Consider California Atty. Gen. Bill Lockyer one-for-two this week in his crackdown on mutual fund sales practices.
On Tuesday, a Los Angeles Superior Court judge issued a tentative decision saying Lockyer’s case against mutual fund giant American Funds was preempted by federal law. But on Thursday, a Sacramento appellate court ruled in the attorney general’s favor in a separate suit involving brokerage Edward Jones & Co.
Edward Jones had challenged the suit Lockyer filed in December, which claimed that the St. Louis brokerage firm had violated California law by failing to properly disclose sales deals with a handful of mutual fund companies -- including American Funds.
A Superior Court judge rejected Edward Jones’ contention that the suit was preempted by federal law, and Thursday an appellate court in Sacramento upheld that ruling. The decision clears the way for a trial date to be set, the attorney general’s office said.
-- Josh Friedman
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