Please Note: You are viewing the unstyled version of Subprimelosses. Either your browser does not support CSS (Cascading Style Sheets) or it is disabled. As a result, much of this website will not look the way it was intended, although all of its contents will be accessible to you. For more information, visit our Browser Support page.

Skip to Primary Site Navigation, Secondary Site Navigation, Content

Home > Cases > Charles Schwab > Recovery of Schwab Yield Plus Losses: Securities Arbitration vs. Class Action

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.

Important Facts to Consider Prior to Joining A Class Action

The pending Schwab Yield Plus class action Class Period is March 17, 2005 to March 17, 2008. Investors that made purchases prior to March 17, 2005 are not represented and have no right to recovery in the Class Action. Investors with significant losses will never have an opportunity to be made whole in a Class Action. Class action representation may be attractive where individual losses are small so that one investor may not have an economic interest in pursuing the case. However, investors that have lost more than $20,000 should strongly consider pursuing their rights on an individual basis.

  • Class actions are typically filed by attorneys seeking to represent all investors who have suffered a common wrong or purchased the same investment. Classes are represented by the investor with the largest claim at stake. This usually means that state pension funds or institutional investors have the most clout in choosing the attorneys and working on the strategy of the case. The interests of the class representative may not be aligned with your interests.
  • Class actions also create hurdles to recovery for most individual investor claimants which include depositions and motion practice which are not permitted in securities disputes decided before FINRA.

The Advantage of Individual Arbitration

Arbitration before FINRA is done on an individual basis with the investor having input in the selection of counsel and participating in the litigation of the case. Individual representation is also a better method of ensuring that conflicts of interest do not exist between multiple clients that a law firm represents and that individual investors receive specific counsel relative to their claims.

Often class claims are settled for cents on the dollar whereas individual securities arbitration claims are pursued to make the investor whole. Securities arbitration is a superior forum to seek damages that exceed out of pocket losses, interest, attorneys fees and punitive damages.

To discuss your individual case, please call us at 866-827-6537.


Return to Evergreen >


Top