Spahn vs. Edward Jones

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Jul 21, 2008 7:13 pm

I just received three $6.74 credit vouchers as settlement in this class action. They are only to be used for fees or commisions. In addition, they each can only be used in certain time frames. More importantly, they are of no value if you are not a current customer of EDJ. Although our court system is the best in the world, when things like this happen, it makes me doubt the system. I am tempted to write the filing lawfirm to ask if they received their fees in the form of vouchers! The settlement might as well have been for EDJ to just pay the attorney fees.

Jul 22, 2008 12:05 am

With the ability to discount stock trades, it's an even bigger joke. i.e., "Oh, those vouchers can't be used in conjunction with discounted trades."

Jul 22, 2008 8:52 am
ednomore:

I just received three $6.74 credit vouchers as settlement in this class action. They are only to be used for fees or commisions. In addition, they each can only be used in certain time frames. More importantly, they are of no value if you are not a current customer of EDJ. Although our court system is the best in the world, when things like this happen, it makes me doubt the system. I am tempted to write the filing lawfirm to ask if they received their fees in the form of vouchers! The settlement might as well have been for EDJ to just pay the attorney fees.





You can also re-open your account here at Jones.

Jul 25, 2008 7:13 pm

I had a former EDJ client in today with his voucher notice wanting to know how he could get payment. I explained that there was no logical way to use the vouchers since he is not an EDJ client. His reaction was very negative toward EDJ. In fact his comments probably reflect current client's attitudes when he said that even if he were a client,it was a lame excuse for payment both in the amount and structure. It seems that the cost of the class action for EDJ may be more costly in loss of clients than in client payments.

Jul 25, 2008 8:37 pm
ednomore:

I had a former EDJ client in today with his voucher notice wanting to know how he could get payment. I explained that there was no logical way to use the vouchers since he is not an EDJ client. His reaction was very negative toward EDJ. In fact his comments probably reflect current client's attitudes when he said that even if he were a client,it was a lame excuse for payment both in the amount and structure. It seems that the cost of the class action for EDJ may be more costly in loss of clients than in client payments.



Been there heard that. 
Originally posted by Lance Legstrong

EDJ
days are numbered. Unfortunate for those who are still drinking the
cool aid and too intoxicated to look at the brutal facts:

1. Jones will have approximately $700 mil in capital after the fine.

2. California AG wants $300 - worst case capital goes to $400

3. At least Two other class action suites for $100 plus each....worse case scenario capital goes to $100 million

4. Negative broker growth in 2004!

5.
More embarrassing bad news around right around the corner that the GPs
in St. Louis this weekend refused to accept as imminent! Too busy in
the Cigar Club at The Ritz! Spending the cash the reps have bilked out
of their clients.

6. Brokers leaving, revenue leaving, plaintiff bar lining up full scale assalt on the capital base.

7. Investors can buy Ishares for the same returns as the preferred funds. Who needs a Jones broker skimming their cash?

8. It was easy for Bachman and anyone else to look good in the market from 1980 through 2000. Those days are over for ever!

9.
The brokers who finally wake up from this wet dream shop their books to
the highest bidder or go indy and dissappear with whats left of the
client assets.

10. Fist time any company went from top 10 one year on the Best Places to Work List to out of the top 100 the very next year.

My
prediction ... Game Over...EDJ greed will put them in the same boat as
other greedy arrongant companies like Drexel, Enron, General American
....insolvent and bankrupt.

Remember what Enron was saying
about 6 months before bankruptcy....Ken Lay was saying "We have a PR
problem". Dick Liddy of General American was "Blaming the Rating
Agencies" for their problems...2 months later ...Regulatory shut down
and fire sale to MetLife. Drexal GPs all cashed out the best they could
and then "set their barn on fire"

You know you Jones guys can
not "wish" these problems away. GPs got greedy and arrogant then
decided it was OK to violate client and broker trusts, just wait to the
next BIG thing to hit the news.

Can anyone recall any
financial service that survived a death spiral of capital under attack,
brokers leaving, while the GPs sip champagne at the Ritz.


Anyone dispute these facts?

Prediction: Jones will not see December 31, 2005!

Jul 25, 2008 8:41 pm

By the way its the lawyer dumbass.  If someone sues my I TRY TO LIMIT DAMAGES DOWN TO ZERO IT AT ALL POSSIBLE.  I got a class action settlement from Sharper Image that was a coupon for their store, who made out, the lawyers that why they go for class action. 

I'm sure you and your client felt very smug and full of yourselves talking about but the circle jerk ends quickly doesn't it?

Jul 26, 2008 10:27 am

I am very aware of class action suits and who they benefit. I am trying to make only two points. Class actions laws need imporvement, and lawyers negotiating damages down may not consider collateral damges . If that is dumbass in your mind, no further discusion is needed.

Jul 26, 2008 10:57 am

Yea that was clear as mud from your post.

Jul 28, 2008 10:31 am
ednomore:

I just received three $6.74 credit vouchers as settlement in this class action. They are only to be used for fees or commisions. In addition, they each can only be used in certain time frames. More importantly, they are of no value if you are not a current customer of EDJ. Although our court system is the best in the world, when things like this happen, it makes me doubt the system. I am tempted to write the filing lawfirm to ask if they received their fees in the form of vouchers! The settlement might as well have been for EDJ to just pay the attorney fees.

 
There are only a relative few people who are going to be affected like you client was.  There was a record date they used to figure out who was a Jones client and who wasn't.  If as of that date you were, you got the credit vouchers.  If you weren't, you got something like $18.75 in cash.  The attorneys have no way of knowing that your client moved his account after that date, so they still think he is a Jones client.  I understand your frustration, but this isn't a Jones issue.  A court issue, yes.
 
You SHOULD be doubting the legal system in this country.  There are certain parts of it that work well while others are just flat broken.  This class action lawsuit part is one of the broken ones. 
Jul 28, 2008 2:02 pm

I have no doubt that you are correct that there was a record date but it was not recent. I have not been a client since March 2007, and the client that I referred to left in April of 2007. As you said, we should question the class action laws. There is little or no(as in this case) value for the benefactors of the suit. In addition, the offenders pay little more than attorney fees for their penalty. This provides little incentive to change their way of doing business. It is less expensive to pay the fees than change.