American International Group
is the target of a class action lawsuit brought by a Pennsylvania law firm on behalf of investors in MFS
mutual funds. The firm of Brodsky & Smith, LLC announced Wednesday that it filed the suit against AIG and certain affiliates in United States District Court for the Eastern district of New York.
The defendants in the case are Royal Alliance
, Sun America Securities
, FSC Securities
, Sentra Securities Corporation
, Spelman & Co.
, and Advantage Capital Corp
. All are broker-dealers affiliated with the AIG Advisor group for any or all of the period from June 30, 2000 until June 8, 2005.
During the period in question, the suit alleges, the defendants gave investment advice without adequately disclosing, as required by federal securities laws, a conflict of interest that existed with regard to a range of funds they recommended. By selling or increasing holdings in these funds, they could avail of special financial incentives offered to AIG Advisor Group personnel.
The funds said to have been inappropriately recommended come from various fund families: AIG SunAmerica, AIM, AllianceBernstein, American, American Skandia, Columbia, Fidelity, Franklin Templeton, Hartford, John Hancock, MFS, NationsFunds, Pacific Life, Pioneer, Putnam, Oppenheimer, Scudder, Van Kampen, and WM.
No class has yet been certified in the action.
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