Recently, many brokerage firms have been accused of fraud and/or inequitable conduct in connection with a practice called revenue sharing with their mutual fund partners.  In essence, brokerage firms are being paid millions of dollars to sell their investors only certain "select" mutual funds.  In most reported instances, the brokerage firms and their brokers are not disclosing to their customers that they are being paid and otherwise compensated to sell certain funds when other funds may be more appropriate for the investor.  This failure to disclose is considered by many to be securities fraud under state and federal statutes.

For example, generally under Texas law, if there is any misrepresentation or omission of something an investor considers important(such as the undisclosed payments and conflicts of interests) in connection with the sale of a security, then the investor is entitled to damages, interest, costs and possibly attorneys' fees.  Accordingly, if an investor in Texas (or many other states with similar laws) has losses from these "preferred" mutual funds, they are entitled to a recovery under state law, generally including their attorneys' fees.

The Forman Law Firm is handling a number of claims for investors that sold these Preferred funds without adequate disclosure. If you purchased any of the suspect funds and have losses, please click here.

The Firms and the underlying mutual fund families that paid for their funds to be sold to investors without adequate disclosure may include the following: