Investors in American Express' proprietary mutual funds filed a lawsuit in June against American Express Financial Advisors alleging excessive fees, the company disclosed in a Friday quarterly earnings filing.

The plaintiffs allege that the fees paid to AEFA for advice and services are excessive; they seek restitution and repeal of certain distribution and advisory agreements.

American Express intends to file a motion to dismiss the action, which was filed in a federal district court in Arizona.

In a presentation accompanying the earnings release, Chief Executive Officer Gary Crittenden reported that the AEFA's proprietary fund sales remained flat, while non-proprietary sales increased "substantially." Total fund sales increased by 19 percent. 

Edited by: Theresa Sim


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