Edward D. Jones reached a tentative settlement on nine class-action lawsuits for not telling investors it accepted revenue-sharing payments from mutual fund companies to promote their funds. The settlement still must be approved by the United States District Court for the Eastern District of Missouri. The $127 million settlement calls for $55 million in cash and $72.5 million in non-cash vouchers to current customers over three years. In addition, the company must cover legal fees.

Edward D. Jones reached a $75 million settlement with the U.S. Attorney General in 2004 following an SEC investigation that found it had failed to disclose revenue-sharing agreements with seven mutual fund companies: American Funds, Federated Investors, Goldman Sachs, Hartford Mutual Funds, Lord Abbett, Putnam Investments and Van Kampen Investments. In settling, the company avoided criminal charges from the Department of Justice.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.