Investors in Charles Schwab’s YieldPlus Fund have important decisions to make. Recently, a California Federal court tentatively certified a class action brought by YieldPlus investors against Schwab. YieldPlus investors need to determine (i) whether they are members of one or more of the designated classes, (ii) if so, whether they wish to remain in the class action or pursue individual claims against Schwab, and (iii) what actions, if any, they need to take.
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.
The primary significance of the Notice is that YieldPlus investors who are class members need to request exclusion from the class if they wish to maintain individual claims against Charles Schwab (even if those claims are already filed). Requests for exclusion must be received by the claims administrator no later than Monday, December 28, 2009.
Investors who acquired shares of the Schwab YieldPlus Fund at any time between May 31, 2006 and March 17, 2008 may be class members. In addition, California residents who held the Schwab YieldPlus Fund as of September 1, 2006 are class members.
On the other hand, investors who acquired shares of the YieldPlus Fund before May 31, 2006 or after March 17, 2008 are excluded from the class unless they reinvested dividends during the class period. These investors need to act to protect their own interests, if appropriate.
Investors with pending arbitrations against Schwab relating to the YieldPlus Fund should contact their attorneys to determine whether they need to opt out of the class. Investors who believe they may wish to pursue a YieldPlus claim against Schwab in arbitration, but have not done so, need to act promptly to preserve their rights.
Investors who have suffered significant losses in the YieldPlus Fund should consult with experienced counsel, who will typically evaluate the alternatives and provide a recommendation as to how best to proceed.
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions. Page Perry’s attorneys are actively involved in representing institutional and individual investors with investment problems. Page Perry is co-lead counsel in arbitration claims across the country relating to the YieldPlus Fund. For further information, please contact us.
The Notice of Pendency of Class Action can be viewed and downloaded at http://www.hbslawsecurities.com/YieldPlus.