Edward Jones settles nine lawsuits for $127 million
St. Louis, MO. – Edward Jones would spend $127 million under a proposed settlement of nine class action lawsuits for questionable revenue-sharing practices.
The St. Louis financial services firm announced the settlement Thursday, but it's still awaiting a judge's approval.
The Securities and Exchange Commission accused the company of failing to disclose a revenue-sharing deal with preferred mutual fund companies to customers in 2004.
The class action settlement would return $55 million in cash to customers and attorneys. Another $73 million would be delivered to current customers in non-cash vouchers over the next three years.
In 2004, Edward Jones struck a separate deal in the matter with U-S attorneys to return another $75 million to customers and avoid criminal charges.