Mutual Fund Fraud

If you purchase a mutual fund, you can basically choose between Class A and Class B shares. The difference between Class A and Class B shares is critical for an investor: with Class A shares you pay an upfront fee only, whereas with Class B shares you pay an upfront fee and a back-end fee when you sell the fund and if you do so before having held the shares for less than five or six years. Another difference is that Class A shares offer the investor discounts on commissions charged whereas Class B shares do not. Again, we see a conflict of interest between the investor and the stockbroker; an unscrupulous stockbroker will try to steer the investor into Class B shares in order to increase his or her commission even when Class B shares are not suitable for the investor.

Sometimes Class B shares are convenient for an investor. Some of the variables to consider in order to decide whether you should go for Class A or Class B shares are:

  • How long you plan to hold the fund
  • The return you think you will get from the Class B shares
  • Whether you qualify for commission discounts if you purchase Class A shares

If you think that your stockbroker has unnecessarily put your investment into Class B shares and therefore charged your account with higher commissions, you might have a case against your stockbroker and should contact a securities arbitration lawyer.

Schedule A Free Initial Consultation Today

If you are facing a legal dispute related to your investments, it is in your interest to work with an experienced attorney who can provide you with the advice you need to reach a resolution that reflects your interests. The first step is to meet with a lawyer so you can learn more about your legal options.

To schedule an appointment with an attorney at Berg Law LLC, call us at 504-526-2921 or contact us online. From our office in New Orleans, we serve clients throughout Louisiana and beyond.

Schedule A Free Initial Consultation Today

If you are facing a legal dispute related to your investments or your commercial interests, it’s in your interest to work with an experienced attorney who can provide you with the advice you need to reach a resolution that reflects your interests. The first step is to meet with a lawyer in person so you can learn more about your legal options.

Contact Us Today

To schedule an appointment with an attorney at Berg Law, LLC, call us at 504-526-2921 or contact us online. From our office in New Orleans, we serve clients throughout Louisiana and beyond.