Printer Friendly
The Free Library
19,573,952 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

CORRECTING and REPLACING Stull, Stull & Brody Announces Class Action against Edward D. Jones & Co., L.P.


Business Editors/Legal Writers

CORRECTION...by Stull, Stull & Brody

NEW YORK--(BUSINESS WIRE)--Feb. 13, 2004

In BW5331 issued Feb. 13, 2004: Please replace the release with the following corrected version.

The corrected release reads:

STULL, STULL & BRODY ANNOUNCES CLASS ACTION AGAINST EDWARD D. JONES Edward D. Jones, Sr. (July 29, 1893-October 10,1982) was an investment banker born in St. Louis. He graduated from Bellefontaine High School in Bellefontaine, Ohio in 1913, then from New York University in 1916.

After graduating from NYU, Jones was employed by N. W.
 & CO., L.P.

Notice is hereby given that a class action lawsuit class action lawsuit

A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax
 was filed on February 13, 2004, in the United States District Court United States District Court

In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court.
 for the Southern District of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, on behalf of a class (the "Class") consisting of all who purchased or otherwise acquired shares or ownership units of Lord Abbett & Co., American Funds
The neutrality of this section is disputed.
Please see the discussion on the talk page.
, Federated Investors Federated Investors is a large financial services company headquartered in Pittsburgh, Pennsylvania. Founded in 1955, the company manages $260 billion dollars of customer assets. The corporation offers 151 different types of mutual funds. , Inc., Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street.  Group Inc., Hartford Mutual Funds Inc., Putnam Investments Family of Mutual Funds, and Van Kampen Investments Van Kampen Investments, Inc. (also Van Kampen Funds, Inc. or Van Kampen American Capital) is a respected mutual fund company. It has been a wholly owned subsidiary of Morgan Stanley[1] since its acquisition in 1996.  Family of Mutual Funds (collectively, the "Mutual Funds") between January 25, 1999 and January 9, 2004, inclusive (the "Class Period").

The Complaint charges that, throughout the Class Period, defendants Edward D. Jones & Co., L.P. ("Edward Jones"), John W. Bachmann, Douglas E. Hill, Michael R. Holmes, Richie L. Malone, Steven Novik, Darryl L. Pope and Robert Virgil, Jr. violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated prom·ul·gate  
tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates
1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce.

2.
 thereunder. More specifically, the complaint alleges that defendants failed to disclose and/or indicate, during the Class Period, that (1) Edward Jones brokers entered into "revenue sharing revenue sharing

Funding arrangement in which one government unit grants a portion of its tax income to another government unit. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states.
" agreements with seven Mutual Fund companies; (2) Edward Jones exclusively trained its brokerage staff to sell the seven Mutual Funds that entered into "revenue sharing" agreements with Edward Jones; (3) Edward Jones discouraged its brokers from contacting and selling other mutual funds where no "revenue sharing" agreement had been made with Edward Jones; and (4) Edward Jones brokers and representatives received extra compensation when they sold any of the seven Mutual Funds to Class Members.

The full extent of defendants' fraudulent scheme was finally revealed on January 9, 2004, when The Wall Street Journal published an article that disclosed Edward Jones' scheme. More specifically, the article stated that when training its brokers in fund sales, Edward Jones gave them information almost exclusively about the seven "preferred" Mutual Funds. Bonuses for brokers depend in part on selling the preferred Mutual Funds, and Edward Jones generally discouraged contact between brokers and sales representatives from rival funds. But while revenue sharing and related incentives were familiar to industry insiders, Edward Jones did not tell customers about any of these arrangements.

Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45 Street, New York, NY 10017. You may also visit our website at www.ssbny.com.
COPYRIGHT 2004 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Feb 13, 2004
Words:532
Previous Article:Global eXchange Services Completes Acquisition of HAHT Commerce.
Next Article:New ELLIS Home Kit Sees Early Success in Mexico.



Related Articles
Notice of pendency of class action filed against Material Sciences Corporation.
KILL BW1171,NY-STULL-STULL-&-BRODY and KILL BW1202, CQN-NY-STULL-STULL-&-BRODY.
KILL BW1307 CA-STULL-STULL-&-BRODY.
Stull, Stull & Brody Announces Class Action Lawsuit Against Iasiaworks, Inc.
CORRECTING and REPLACING Stull, Stull & Brody Announces Class Action Lawsuit Against Officers Of Read-Rite Corporation.
CORRECTING and REPLACING Stull, Stull & Brody Announces Class Action Lawsuit against Officers of Redback Networks, Inc.
Stull, Stull & Brody Announces Class Action Against Netopia, Inc.
Stull, Stull & Brody Announces Class Action Against New York Community Bancorp Inc.
Stull, Stull & Brody Announces Class Action on Behalf of Purchasers of the RS Family of Mutual Funds.
Stull, Stull & Brody Announces Class Action against Molex.

Terms of use | Copyright © 2012 Farlex, Inc. | Feedback | For webmasters | Submit articles