A lawsuit filed in St. Louis on behalf of investors accuses brokerage A.G. Edwards Inc. of taking millions of dollars in secret kickbacks over the last five years to push certain mutual funds to clients.
The lawsuit claims that the alleged payments, known as revenue sharing, created a conflict of interest between the St. Louis-based financial services holding company and its customers. Revenue-sharing fees are legal but must be properly disclosed.
A.G. Edwards declined to comment. Its shares fell 50 cents to $41.82 on the New York Stock Exchange.