Schwab Yield Plus Fund: Another Win For Investors
Yet another Schwab Yield Plus investor has emerged victorious in a case against Charles Schwab and the Schwab Yield Plus Fund Select Shares (SWYSX). On Dec. 7, a Financial Industry Regulatory Authority (FINRA) arbitration panel awarded an investor from Huntington Beach, California, more than 100% of his net out-of-pocket losses - $19,400 - for his claims against Charles Schwab regarding Schwab Yield Plus Fund Select Shares.
The claimant was represented by the law firms of David P. Meyer & Associates Co., L.P.A.; Maddox, Hargett & Caruso, P.C.; Aidikoff, Uhl & Bakhtiari; and Page Perry, LLC.
The Schwab Yield Plus Funds have been at the center of ongoing litigation and claims by investors that Charles Schwab misrepresented the risks of the products, as well as failed to disclose important information regarding certain securities held by the funds.
Those securities included an overconcentration of high risk, speculative mortgage-backed securities. Ultimately, investors in the Schwab Yield Plus Funds lost 31.7% from June 2007 through June 2008, while other ultra short bond funds experienced little or no losses.
Thousands of Yield Plus investors have filed arbitration claims with FINRA in an attempt to recover their investment losses in the Yield Plus Funds. In each of the claims, the common theme involves allegations that Charles Schwab presented the Yield Plus Funds as similar to money market investments but with higher potential returns and only marginally higher risks.
In August, a federal court certified a Charles Schwab Yield Plus lawsuit as a class action lawsuit. With the ruling, the court imposed a Dec. 28 deadline for class members to decide whether they wish to opt out of the class action and pursue an individual arbitration claim with FINRA. This means Yield Plus investors who intend to opt out of the class action must ensure that their exclusion request is received by the Dec. 28 deadline. After that date, investors will be bound by the final results of the class action lawsuit.
For more information about opting out of the Charles Schwab Yield Plus class action lawsuit, please contact us at 800-505-5515.
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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.
