Court says state can sue brokerage
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A California Court of Appeal panel has reinstated the state’s fraud lawsuit against brokerage Edward Jones & Co.
The case, filed in 2005, alleged that Jones had failed to properly disclose sales arrangements it had with a few favored mutual fund companies.
A Superior Court judge dismissed the suit last year, saying the state was treading on federal regulatory turf.
But the Court of Appeal in Sacramento ruled that the judge erred and that California had the right to sue Jones for fraud.
A Jones spokeswoman in St. Louis said the firm had yet to review the decision.
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