NEW YORK, March 2, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Edward Jones & Co. ("Edward Jones" or the "Company"), on behalf of all persons or entities who purchased shares of "preferred" mutual funds through Edward Jones during the period between February 25, 1999 and January 9, 2004, inclusive (the "Class Period"). The case was filed in the United States District Court for the Eastern District of Missouri.
The complaint alleges that Edward Jones, a licensed broker-dealer, violated section 10(b) of the Securities Exchange Act of 1934. As alleged in the Complaint, throughout the Class Period Edward Jones recommended and sold to its clients shares or units of mutual funds from so-called "preferred" families of funds, specifically American Funds, Federated Funds, Goldman Sachs Funds, Hartford Mutual Funds, Lord Abbett Funds, Putnam Funds, and Van Kampen Funds. It is alleged that Edward Jones represented that its recommendations were based on extensive financial analysis and judgment based on the performance of those funds. In fact, however, Edward Jones was recommending those funds because it was receiving hundreds of millions of dollars of undisclosed secret commissions from those funds.
The secret arrangement created an undisclosed conflict of interest for Edward Jones. As a financial advisor to its clients, Edward Jones had a fiduciary obligation to provide honest, complete and untainted investment advice. These secret marketing fees created a conflicting financial incentive for Edward Jones to skew its advice to its clients to benefit itself, often at its clients' expense. As a result of this financial incentive, Edward Jones steered its clients into numerous underperforming mutual funds.
If you purchased shares in any of the seven (7) "preferred" mutual fund families through Edward Jones during the Class Period, you have until March 23, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca