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Schwab YieldPlus

Schwab YieldPlus: SWYPX
Schwab YieldPlus Select: SWYSX

Class Action Opt Out Deadline Is December 28, 2009

Individual Securities Arbitration Claim vs. Class Action

A Schwab YieldPlus lawsuit has been certified by a California federal court as a class action. Investors in the Schwab YieldPlus Funds who are in the “class” will automatically remain in and be bound by the results of the class action unless they formally file an exclusion request to opt out by the deadline of Dec. 28, 2009. Depending on your investment losses and circumstances, opting out of the class action and filing your own individual investor arbitration claim with FINRA may be in your best interests.

Results of Our Cases That Went to Final Hearing

Our experienced securities arbitration attorneys currently represent Schwab investors who have opted out of the class action and filed individual securities arbitration claims. To date, six cases have entered into a final hearing before the Financial Industry Regulatory Authority (FINRA) and resulted in significant awards for all investors. View the award decisions of these cases.

Overview

Schwab YieldPlus Funds: What Investors Need To Know

On Oct. 14, 2009, the SEC formally issued a Wells Notice to Charles Schwab Corp. The Notice serves as a warning that investigators plan to recommend legal action against the company related to its Schwab YieldPlus Funds. Currently, the YieldPlus Funds are the subject of a class action lawsuit and numerous arbitration claims over allegations Schwab misrepresented the funds as a safe alternative to money-market investments and a cash substitute. Instead, Schwab managers invested more than 45% of the YieldPlus Funds' assets in risky mortgage-related securities.

Schwab YieldPlus: Latest Answers To Your Questions

News Commentary

Schwab YieldPlus: Worst Of The Worst

The back story on the Schwab YieldPlus Funds goes something like this: As part of the ultra-short funds genre, Schwab YieldPlus - which refers to the Schwab YieldPlus Fund Select Shares (SWYSX) and the Schwab YieldPlus Investor Shares (SWYPX) - was supposed to be the safest of all bond funds. Charles Schwab marketed the YieldPlus Funds as a safe alternative to money market investments - a cash substitute designed to preserve capital and generate income with minimal price fluctuation. Instead, managers - hoping to pump up the performance of YieldPlus - gambled big with mortgage and asset-backed securities. When the housing market imploded, so, too, did Schwab YieldPlus. The fund lost more than 35% last year, while the average ultra-short bond fund was down just 1.9%.

Subprime-Related Lawsuits Hound Charles Schwab

For years, Charles Schwab Corp. employed a clever advertising campaign featuring founder Charles Schwab and a “Talk to Chuck” slogan. Now, as the subprime litigation wave gains momentum, Schwab clients are doing just that - but in court.

Schwab High Yield Plus Select Fund Under Fire

Damage control is probably being kicked into high gear at Charles Schwab Corp. these days. Investors in Schwab's High Yield Plus Select Fund (SWYSX) are learning that the fund has tumbled 22 percent since January 2007.

Legal Recourse For Investors In Schwab YieldPlus Funds

Ultra-short bond funds Schwab YieldPlus (SWYPX) and Schwab YieldPlus Select (SWYSX) were once marketed as a conservative and higher-yielding alternative to money-market funds - good investments for families or retirees to park cash for future expenses such as college tuition or the purchase of a second home.

Recovery of Schwab Yield Plus Losses: Securities Arbitration vs. Class Action

Before retaining an attorney, an aggrieved investor should consider carefully whether their rights are better pursued through a class action lawsuit or securities arbitration before the Financial Industry Regulatory Authority (FINRA). This is particularly true for Schwab Yield Plus (SWYPX and SWYSX) money market investors.

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