Investors in American Express'
proprietary mutual funds filed a lawsuit in June against American Express Financial Advisors alleging excessive fees, the company disclosed in a Friday quarterly earnings filing
The plaintiffs allege that the fees paid to AEFA for advice and services are excessive; they seek restitution and repeal of certain distribution and advisory agreements.
American Express intends to file a motion to dismiss the action, which was filed in a federal district court in Arizona.
In a presentation accompanying the earnings release, Chief Executive Officer Gary Crittenden
reported that the AEFA's proprietary fund sales remained flat, while non-proprietary sales increased "substantially." Total fund sales increased by 19 percent.
Stay ahead of the news ... Sign up for our email alerts now