Eaton Vance Broker Payments Illegal: Derivative Suit

Law360, New York (March 29, 2010, 7:12 PM EDT) -- A subsidiary of investment management company Eaton Vance Corp. has been hit with a derivative suit alleging it illegally compensates its broker-dealers with payments based on the value of assets held in customer accounts, in violation of federal securities laws.

The suit against Eaton Vance Distributors Inc. and several of its trustees was filed Friday in the U.S. District Court for the District of Massachusetts by Jeffrey Wiener of Florida, a shareholder in a mutual fund offered by the company.

The complaint states that Wiener brought...
To view the full article, register now.