New York, NY: A$60 million settlement of a class action brought against AG Edwards by a group of account holders in 2005, has been approved by the Missouri Court of Appeals Eastern District.
The settlement, originally agreed in February 2010, will see $26 million in cash go to the 1.6 million class plaintiffs as well as $34 million in vouchers. This will include $21 million to be paid in attorneys' fees and $600,000 for legal expenses.
The lawsuit alleged that AG Edwards was paid kickbacks by mutual fund companies "[t]he undisclosed kickbacks paid to Defendants created unmanageable and continuing conflicts of interest and breaches of fiduciary duties....These secret kickbacks provided undisclosed and improper compensation to the Defendants, while the preferred funds received increased visibility in the Defendants' extensive mutual fund distribution network."
In 2007 A.G. Edwards was acquired by Wachovia. Then, in 2008 Wells Fargo acquired Wachovia. AG Edwards is now headquartered in South Dakota.
