Score another one for California Attorney General Bill Lockyer. Sacramento County Superior Court Judge Loren E. McMaster has ruled against a lawsuit Edward Jones filed to block a lawsuit Lockyer filed against the firm over its mutual fund sales practices, Dow Jones reports. Judge McMaster tentatively ruled that Lockyer is not precluded by Federal laws from filing such a suit.
Judge McMaster is scheduled to hear arguments in the case this Tuesday, with a ruling expected shortly thereafter.
Lockyer has charged Edward Jones with accepting $300 million in shelf-space payments from seven mutual fund companies between 2000 and 2004 to promote their funds. The attorney general wants the firm to turn over all profits earned on those sales as well as to pay investors for restitution and damages from purchasing those funds. The shelf-space payments came in the form of both cash and directed-brokerage business.
Lockyer has a similar pending lawsuit against American Funds.
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