EJ Settles 9 Class Action Suits
I worked at Jones from 1999-2004. All I sold was preferred funds. I never told the client that we had revenue sharing. I don't think the IR's are telling clients today that there is revenue sharing.
I am curious. Is there more class action suits to follow or is this the end? Looking for info and insight.
Maybe the lawyers for EDJ should have used the “hamburger” to state their case.
How many brokers anywhere told their clients about revenue sharing before the bulk of the lawsuit hit in 2004? I’d be interested in hearing if some of the wirehouses had any sort of verbal or written revenue sharing disclosure before Jones got nailed.
[quote=Spaceman Spiff]How many brokers anywhere told their clients about revenue sharing before the bulk of the lawsuit hit in 2004? I'd be interested in hearing if some of the wirehouses had any sort of verbal or written revenue sharing disclosure before Jones got nailed. [/quote]
...YOU GUYS DID IT TOO!!!
Exactly. Everyone, especially on this board, is quick to point out the revenue sharing thing with Jones and the fine we paid. I've never heard anyone else talk about how that fine changed the other firm's business practices. Maybe I'm niave, but I can't help but think there were a bunch of other firms sweating it out about if they were next. Like crooks running when the cops show up, the only one you hear about in the paper is the one who got caught. Doesn't mean the rest aren't guilty.
I'm thinking about buying reprints of the EDWARD JONES AGREES to SETTLE 9 LAWSUITS that appeared in the Wall Street Journal and then send them to the clients that are still at Jones. Would this be considered a solicitation by Jones? Would they fire a cease and desist letter at me?
should I or shouldn't I?
You can find this out yourself. Most major firms do not sell 3-4 mutual
funds exclusively to accounts $50K and smaller and generate $200 million
in kickbacks. That is the only fact that you need to know.