Lord Abbett Slapped With Lawsuit Over Class A Share Sales

Charging that Lord Abbett misleadingly marketed Class A shares on 21 of its funds as offering superior performance than lower-cost Class B and Class C shares, which actually delivered identical performance, investors sued the company Thursday. The investors took issue with paying a 5.75% sales charge on the Class A shares.

Finklestein & Krinsk filed the class-action lawsuit on behalf of Zavolta v. Lord, Abbett in the U.S. District Court for the District of New Jersey, for the period from Sept. 11, 2003 through the present.

The suit says Lord Abbett defrauded investors by disseminating prospectuses containing incomplete and misleading information, earning the firm greater profits at the expense of plaintiff and class members.