Schwab Yield Plus Opt-Out Deadline Nears
Schwab Yield Plus investors have approximately two weeks to opt out of a Schwab Yield Plus class action lawsuit involving the Schwab Yield Plus Fund Select Shares (SWYSX) and the Schwab Yield Plus Investor Shares (SWYPX). The deadline to opt out is Dec. 28, 2009.
San Francisco broker Charles Schwab marketed and sold the Yield Plus funds as a safe alternative to money market accounts, depicting the funds as a way to preserve capital while generating income at relatively low risk. Unfortunately for investors, those representations did not live up to their hype. Evidence shows that the Schwab Yield Plus funds contained more than 45% of toxic mortgage- and asset-backed securities, which exposed investors to the potential of more risk and greater financial losses.
More investors are filing individual arbitration claims with the Financial Industry Regulatory Authority (FINRA) as they try to recover their investment losses in the YieldPlus funds. Among the allegations in their complaints: Charles Schwab misrepresented the Yield Plus products by failing to disclose the fact that the funds were over concentrated in risky mortgage-related holdings.
Investors need to understand that they are considered part of a class action - and bound by the lawsuit’s final outcome - unless they formally request exclusion. For some Schwab Yield Plus investors who suffered significant financial losses in their Schwab Yield Plus investments, filing an individual claim with FINRA may present a better opportunity to recover more of their financial losses. Investors should consult with legal counsel to thoroughly review all of their options.
For additional information about opting out of the Schwab Yield Plus class action before the Dec. 28 deadline, please contact us at 866-827-6537.
Our affiliation of lawyers is actively involved in advising individual and institutional investors in evaluating their legal options when confronted with subprime and other mortgage-related investment losses.
