By Valerie S. Johnson
A large-scale class action lawsuit is winding its way through a New York court. The plaintiffs in a suit against American Express Financial Advisors (now Ameriprise) are more than 2.4 million people who bought financial plans, bought certain mutual funds, or paid a fee for financial advice between March 10, 1999 and April 1, 2006.
The investors claim they were steered to buy certain mutual funds. It was a conflict of interest, the plaintiffs allege, because the American Express Financial Advisors recommended funds based on the fees the advisors would receive. The investors claim that these arrangements were not adequately disclosed to them. American Express maintains that it provided personalized financial plans and properly disclosed any potential conflicts of interest.
The plaintiffs and American Express decided to avoid a long, costly trial and agreed on a settlement. American Express has paid $100 million into an interest-bearing account. This fund will be used to pay compensation to the class members and fees to the attorneys if the court approves the plan at a fairness hearing on June 4, 2007.
Information packets were recently sent to those investors who may be eligible to claim a share of the settlement. You must send in the enclosed proof of claim form postmarked no later than July 10, 2007. If you didn’t receive the packet or have any questions, call 1 (888) 212-5605 toll free to speak to a representative. Detailed information is available at the
AEFA Securities Litigation Settlement Website.
$100 Million Class Action Lawsuit against American Express Financial Advisors
