Legal Eagle Review News

According to the Statement of Claim, the Claimant lost money in the YieldPlus Fund as a direct result of Charles Schwab's false and misleading information about the Fund's risk tolerance and degree of diversification. Charles Schwab marketed the YieldPlus Fund as an ultra-short bond fund that was a higher-yielding alternative to money-market funds, while seeking minimal changes in share price. Based on Charles Schwab's explanation of the Fund, it misrepresented and omitted material information concerning the nature and extent of the Fund's concentration in the subprime market and resulting risk and exposure to mortgage backed and related securities.

Over the past year, the Schwab Yield Funds, YieldPlus and YieldPlus Select, have declined in value due to the Funds' exposure to subprime related holdings and mismanagement of the Funds. In connection with its sales of the Schwab Yield Funds, Charles Schwab did not inform investors that the Funds' managers had over-concentrated the Funds' assets in various structured financial products. These securities were and are thinly traded and illiquid, and often difficult to value. Essentially, investors of the Schwab Yield Funds received a mutual fund concentrated in speculative, risky mortgage backed securities. The manner in which the Schwab Yield Funds were invested made them more like hedge funds rather than money market funds.

Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced losses of $25,000 or more in the Schwab Yield Funds, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim may obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf  

The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered losses in the Schwab Yield Funds, and as a result of the credit crisis and subprime fallout as a whole. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

If you want to discuss your legal options at no obligation, including whether the filing of an individual arbitration claim is right for you, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com .