Suit Vs. Merrill Lynch Over Revenue Sharing Dismissed

Law360, New York (June 13, 2006, 12:00 AM EDT) -- The string of dismissals of federal lawsuits over “revenue sharing” between mutual funds and brokers got a little bit longer Friday, when a federal judge in Manhattan signed an order dismissing a suit that alleged that Merrill Lynch & Co. herded investors into mutual funds that charged excessive fees and kicked back incentives to the financial services giant.

Revenue sharing arrangements—also known as shelf space arrangements—entail a fund giving some form of payment to a broker in exchange for sales of the fund’s shares.

Of the...
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