Investors in Charles Schwab’s YieldPlus Fund need to be aware of their options in light of the recent certification of a class action brought by YieldPlus investors against Schwab. Most importantly, 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 properly filed and received by the claims administrator no later than Monday, December 28, 2009.
The Schwab YieldPlus Fund, which was misrepresented to investors as low risk alternative to a money market fund, lost over 50% of its reported net asset value in 2007 and 2008. The Fund was among the worst performing funds in the ultra-short term bond fund category due to its undisclosed over-concentration in and big bets on non-conventional investments, such as derivatives of mortgage-backed securities and other asset-backed obligations.
The U. S. Securities and Exchange Commission recently completed its investigation of Charles Schwab regarding the YieldPlus Fund. On October 14, 2009, Charles Schwab was notified that the SEC staff intends to recommend the filing of a civil enforcement action against Schwab Investments, Charles Schwab Investment Management, Charles Schwab & Co., Inc. and the president of the funds for possible violations of the securities laws with respect to the Schwab YieldPlus Fund.
YieldPlus investors who want to pursue individual actions and who have not already opted out of the class action need to act promptly to preserve their right to file individual arbitration claims against Schwab. Page Perry is co- counsel in arbitration claims across the country relating to the YieldPlus Fund. To date, six arbitration claims brought by Page Perry and co-counsel have gone to trial and resulted in awards issued by the arbitration panel in favor of our clients.
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 in YieldPlus actions. For further information, please contact us.
The Notice of Pendency of Class Action can be viewed and downloaded at http://www.hbslawsecurities.com/YieldPlus.