• State Court Upholds Preemptive Reach of NSMIA in Rejecting Action by California Attorney General
  • January 10, 2006 | Author: Catherine Botticelli
  • Law Firm: Dechert LLP - Washington Office
  • In March 2005, Capital Research and Management Company ("CRMC") and American Funds Distributors, Inc. ("AFD") sued California Attorney General Bill Lockyer ("Lockyer") in Los Angeles Superior Court over Lockyer's investigation regarding CRMC/AFD prospectus disclosure of compensation agreements (so-called "shelf-space agreements") between CRMC, AFD, and unaffiliated broker-dealers which sell shares of the American Funds (the "Funds").