American Funds won a significant court ruling Tuesday that is expected to throw out a California lawsuit accusing the company of failing to disclose $426 million in fees to its brokers.

Los Angeles Superior Court Judge Carl West issued a tentative ruling that said the allegations in the suit, filed by California Attorney General Bill Lockyer, undermined the U.S. National Securities Market Improvements Act of 1996. Specifically, the judge said the lawsuit would illegally force American Funds to divulge information beyond what the company is required to report to the U.S. Securities and Exchange Commission.

It was unclear when the judge would make a final ruling.

Lockyer, who filed the suit in March, claimed American Funds investors should know about “revenue sharing” payments the company made to dozens of brokers who recommended its products. The case seeks profits obtained through that practice, plus $25,000 per violation of the state’s corporate securities laws.

American Funds, headquartered in Santa Ana, is a unit of Los Angeles-based Capital Group Cos., the third-largest mutual fund company in the U.S. behind Fidelity Investments and Vanguard Group. American Funds has 29 separate mutual funds with total assets of $600 million and 20 million shareholders.