Investors Sue American Funds Over Alleged Kickbacks

December 27, 2006, 1:00 a.m. EST 1 Min Read

Investors have filed a lawsuit against American Funds, alleging that the firm paid brokers kickbacks to sell its funds using assets rightfully belonging to investors, Reuters reports.

The lawsuit, filed by Gutride Safier in U.S. District Court in the Central District of California., charged the company with making “false and misleading statements” in fund prospectuses and other documents by not revealing the kickback arrangements.

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