A California appeals court upheld an earlier Superior Court ruling in favor of
As a result, Lockyer's trail against the brokerage firm may now proceed.
Earlier in the week, however, Lockyer was dealt a setback in a similar case he has against
According to Lackyer's lawsuit against American Funds, its 20 million shareholders were not informed of the payments, which, Lockyer said, caused brokers to push funds that paid these fees, rather than those that were best suited for the investors.
Unlike other fund companies that have settled with federal and state regulators over the past two years over improper sales and trading practices, American Funds decided to fight the charges. The firm used a 1996 federal law that says a state cannot pass any governance laws that go beyond what