(by Mark Riley)

California charges Pimco mutual funds for $9 million as the fund company did not disclose properly its payments, said attorney-general of California.

Pimco’s distributor is expected to pay the penalty to settle the lawsuit with $5 million paid as civil penalties and $4 million for covering investigating costs. According to the settlement, PA Distributors, known formerly as Pimco Advisors Distributors, is expected to assist in the continuation of the probe of sales practices.