DENVER, March 31, 2018 /PRNewswire/ -- Franklin D. Azar & Associates ("FDA") and John R. Garner of the Garner Law Office ("Garner") announced today that they have filed a securities class action lawsuit on behalf of Plaintiffs Edward Anderson, Raymond Keith Corum, and Jesse and Colleen Worthington against Edward D. Jones & Co., L.P., The Jones Financial Companies, L.L.L.P., EDJ Holding Company, Inc., James D. Weddle, Penelope ("Penny") Pennington, Daniel J. Timm, Kenneth R. Cella, Jr., Brett A. Campbell, Kevin D. Bastien, Norman L. Eaker, Vincent J. Ferrari, Timothy J. Kirley, and James A. Tricarico, Jr. (collectively, "Edward Jones" or "the Company") as well as Olive Street Investment Advisors, LLC, Passport Holdings, LLC, and Passport Research, Ltd. (collectively with Edward Jones, "Defendants"). The action, which is captioned, Anderson et al v. Edward D. Jones & Co., L.P. et al 2:18-cv-00714-JAM-AC, asserts claims under § 12(a)(2) and § 15 of the Securities Act of 1933 (1933 Act), § 10(b) of the Securities Exchange Act of 1934 (1934 Act) and Rules 10b-5(a)(b), and (c) promulgated thereunder, and the fiduciary duty laws of Missouri and California on behalf of all persons (including, without limitation, their beneficiaries) who had their commission-based accounts with Edward Jones moved into one of the Advisory Programs between March 30, 2013 and March 30, 2018 (the "Class Period"), inclusive, and who were damaged thereby (the "Class").
The Complaint alleges that Edward Jones executed a reverse churning scheme to take advantage of trusting, long-standing clients and unlawfully shift their commission-based accounts to a fee-based program – Edward Jones Advisory Solutions ("Advisory Solutions") or Edward Jones Guided Solutions ("Guided Solutions") (collectively, "Advisory Programs"). In orchestrating this scheme to churn revenue from essentially dead assets, Edward Jones made misleading statements and material omissions to their clients about the amount of fees they would pay after their assets were moved into one of the Advisory Programs and about Edward Jones' preference for investing in proprietary funds only available through Advisory Solutions. In addition, Defendants breached their fiduciary duties because clients who engaged in little to no trading activity paid more in fee-based accounts than they did in commission-based accounts and clients who were invested in a proprietary fund were entitled to know about Defendants' competing interests that caused them to make self-interested investments on their clients' behalf.
If you wish to serve as Lead Plaintiff of the Class, you must file a motion with the Court no later than May 29, 2018, which is 60 days from the date of publication of notice of the pendency of the first filed, related securities class action on behalf of Edward Jones clients. Any member of the proposed Class may move the Court by the above deadline to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
If you would like to discuss this Action in more depth, or have any questions concerning this notice, your rights, or your interests, please contact Ivy Ngo and/or John Garner at 303.757.3300 or by email at EdwardJones@FDAzar.com. More information about FDA and Garner may be found online at https://fdazar.com/class-action-law-suits/ and https://www.garnerlegal.com/.
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SOURCE Franklin D. Azar & Associates, P.C.