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Home > Cases > Charles Schwab > Class Action Opt Out Deadline Is December 28, 2009

Class Action Opt Out Deadline Is December 28, 2009

Individual Securities Arbitration Claim vs. Class Action, Recovering Schwab YieldPlus Losses

A Charles Schwab YieldPlus lawsuit involving the Schwab YieldPlus Fund Select Shares (SWYSX) and the Schwab YieldPlus Investor Shares (SWYPX) has been certified to move forward as a class-action lawsuit. Schwab YieldPlus Fund investors who are in the “class” now have approximately 75 days from October 12, 2009 - or until Monday Dec. 28, 2009 - to formally “opt out” of the class action if they intend to pursue an individual arbitration claim with the Financial Industry Regulatory Authority (FINRA).

If you are a member of the class, you are considered “in” this class-action lawsuit unless you formally request to be excluded prior to the court-imposed deadline. If you do not opt out, you will be bound by the final results of the class action lawsuit. For information on how to opt out of the Charles Schwab YieldPlus class action lawsuit and pursue your individual arbitration claim, please contact us.

Notice of the Pendency of the Schwab YieldPlus class action lawsuit is being distributed to all Schwab YieldPlus class members. Once you receive this notice, which is titled Notice of Pendency of Class Action, the following steps must be taken in order to opt out of the Schwab YieldPlus class action lawsuit:

  • Provide a written statement that says you are requesting exclusion from the Schwab YieldPlus class-action lawsuit;
  • Sign and date your request, as well as provide your address; and
  • Investors must mail the above information so that it is received by the Notice Administrator by Dec. 28, 2009, to:

In re Schwab Corp. Securities Litigation Exclusions
c/o Gilardi & Co. LLC
P.O. Box 808061
Petaluma, CA 94975-8061

Class-action notices are being distributed to Schwab investors via U.S. mail and email. Information also is posted on the Web site, http://www.hbsslawsecurities.com/YieldPlus, in a PDF document titled October 12, 2009, Notice of Pendency.

Additional Opt Out Information

There are several important facts to consider when weighing the pros and cons of class action lawsuits versus individual arbitration claims. Investors with significant financial losses are not likely to have an opportunity to be made whole in a class action. For some investors, class action representation may be attractive when individual financial losses are small and the investor may not have an economic interest in pursuing an individual case on his own. However, investors who sustained significant losses should strongly consider pursuing and opting out of the class action so they can pursue their rights on an individual basis.

It should be noted that there is no settlement of the class action pending at this time. Thus, the benefits, if any, of remaining in the class action are unknown.

Lastly, individual arbitration claims take an average of 12-14 months from start to finish. Class action can take many years to resolve.

For more information about opting out of the Charles Schwab class action or if you are an individual or institutional investor and have questions about your Schwab YieldPlus investments, please contact us.

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.


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