(Source: MARKETWIRE)
The Securities Law Firm of Klayman & Toskes, P.A. ("K&T")
(http://www.nasd-law.com), announced today that the U.S. Securities
and Exchange Commission issued a Wells Notice to Charles Schwab
(NASDAQ: SCHW) regarding its YieldPlus Fund. The YieldPlus Fund sold
two classes of shares: Investor Shares (NASDAQ: SWYPX) and Select
Shares (NASDAQ: SWYSX). A Wells Notice is a notification from a
regulator which provides that it intends on recommending that
enforcement proceedings be initiated against the recipient of the
Notice for violations of securities laws. It also provides the
recipient the opportunity to respond to the issues raised in the
Wells Notice and convince the regulators that enforcement charges are
unnecessary. The Notice is neither a formal allegation nor a finding
of wrongdoing.
Presently, K&T represents many investors from across the nation who
purchased shares of the YieldPlus Fund from Charles Schwab, in
securities arbitration claims before the Financial Industry Regulatory
Authority ("FINRA"). The claims allege that Charles Schwab marketed
the YieldPlus Fund as an ultra-short bond fund that was a
higher-yielding alternative to a money-market fund while seeking
minimal changes in share price. However, based on Charles Schwab's
explanation of the Fund, the claims allege that Schwab misrepresented
and omitted material information concerning the nature and extent of
the Fund's risk, and exposure to mortgage backed and related
securities. K&T believes the issuance of the Wells Notice is a
significant development, and supports the claims it has filed against
Schwab on behalf of aggrieved investors.
Earlier this week, the Court in the YieldPlus Class Action, In Re
Schwab Corp. Securities Litigation ("Class Action"), Case No.
08-cv-01510 WHA, issued a Notice of Pendency of Class Action which
provided that any request for exclusion from the Class Action must be
received by the claims administrator by December 28, 2009. K&T
reminds investors of the benefits of filing an individual securities
arbitration claim, as opposed to participating in a class action
lawsuit. By participating in a class action lawsuit, an investor may
only recover a nominal amount. However, if one has experienced
significant losses in the YieldPlus Fund, it may be more beneficial
for them to file an individual securities arbitration claim. In
2003, K&T conducted a detailed study of securities arbitration versus
class action. The study concluded that investors who file a
securities arbitration claim traditionally 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
Retail and institutional investors who purchased shares of the
YieldPlus Fund from Charles Schwab and sustained significant losses
can contact K&T to explore their legal rights and options. The
attorneys at K&T are dedicated to pursuing claims on behalf of
investors who have suffered investment losses. K&T, 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 wish to discuss this announcement or have investment losses of
$100,000 or more in Schwab's YieldPlus Fund, 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.
(NASDAQ: SCHW)
(NASDAQ: SWYPX)
(NASDAQ: SWYSX)
Contact:
Steven D. Toskes, Esquire
Jahan K. Manasseh, Esquire
Klayman & Toskes, P.A.
888-997-9956
http://www.nasd-law.com
SOURCE: Klayman & Toskes
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