Capital Group Companies, Inc. is a large investment management company.

The original Complaint alleges that Capital Group Companies, Inc., Capital Research And Management Co., and American Funds Distributors, Inc ("Defendants") violated federal securities laws by paying kickbacks to broker/dealers who sold American Funds Mutual Funds. The Complaint asserts that Defendants made false and misleading statements in mutual fund prospectuses and other documents by concealing the existence of the kickback arrangement. According to the suit, Defendants illegally used investor assets to pay the kickbacks. The Complaint asserts violations of the Securities Act of 1933, Securities Exchange Act of 1934, and other laws. Some of the Defendants were previously sued by the California Attorney General who stated that, "the payments are little more than kickbacks to buy preferential treatment. Investors deserve to know that."

On April 4, 2007, Judge Gary A. Feess granted the motion to consolidate two related cases under Master File, CV 06-7815-GAF. The Court appointed the Movants as lead Plaintiffs and approved their selection of lead Counsel. On July 26, 2007, a Consolidated Amended Complaint was filed. The Defendants responded by filing a motion to dismiss the Consolidated Amended Complaint on October 26, 2007.

On June 5, 2008, the Court granted the motion to dismiss the Consolidated Amended Complaint with prejudice. The Plaintiffs filed a Notice of Appeal on June 20, 2008.

On October 13, 2010, the Court of Appeals vacated the District Court's judgment and remanded the case to the District Court for further proceedings. Defendants renewed their Motion to Dismiss the Consolidated Amended Complaint.

On February 22, 2011, the Court again granted Defendants' motion to dismiss the Consolidated Amended Complaint with prejudice. The Plaintiffs filed a Notice of Appeal on February 24, 2011.

On August 14, 2012, the Court of Appeals affirmed in part and vacated in part the District Court's judgment and remanded the case for further proceedings.

Plaintiff voluntarily dismissed the case on October 24, 2012.

The American mutual funds and their respective symbols are as follows:

American Funds Amcap 529 (CAFAX); American Funds Amcap (AMCPX); American Funds American Balanced 529 (CLBAX); American Funds American Balanced (ABALX); American Funds American Hi Inc Tr 529 (CITAX); American Funds American Hi Inc Tr (AHITX); American Funds American Mutual 529 (CMLAX); American Funds American Mutual (AMRMX); American Funds Bond Fund of Amer 529 (CFAAX); American Funds Bond Fund of Amer (ABNDX); American Funds Capital Inc Bldr 529 (CIRAX); American Funds Capital Inc Bldr (CAIBX); American Funds Capital World Bd 529 (CCWAX); American Funds Capital World Bd (CWBFX); American Funds Capital World G/I 529 (CWIAX); American Funds Capital World G/I (CWGIX); American Funds EuroPacific Gr 529 (CEUAX); American Funds EuroPacific Gr (AEPGX); American Funds Fundamental Invs 529 (CFNAX); American Funds Fundamental Invs (ANCFX); American Funds Grth Fund of Amer 529 (CGFAX); American Funds Grth Fund of Amer (AGTHX); American Funds High-Inc Muni Bond (AMHIX); American Funds Inc Fund of Amer 529 (CIMAX); American Funds Inc Fund of Amer (AMECX); American Funds Intm Bd Fd of Amer (AIBAX); American Funds IntmBd Fd of Amer 529 (CBOAX); American Funds Invmt Co of Amer 529 (CICAX); American Funds Invmt Co of Amer (AIVSX); American Funds Ltd-Terrn Tax-Ex Bd (RTXFX); American Funds New Economy 529
(CNGAX); American Funds New Economy (ANEFX); American Funds New Perspective 529 (CNPAX); American Funds New Perspective (ANWPX); American Funds New World 529 (CNWAX); American Funds New World (NEWFX); American Funds Smallcap World 529 (CSPAX); American Funds Smallcap World
(SMCWX); American Funds Tax-Exempt Bond (AFTEX); American Funds Tax-Exempt Fund V A; (TFVAX); American Funds Tax-Exempt Fund CA (TAFTX); American Funds US Government See 529 (CGTAX); American Funds Tax-Exempt Fund MD (TMMDX); American Funds US Government Sec (AMUSX); American Funds Washington Mutual 529 (CWMAX); American Funds Washington Mutual (AWSHX)