Business Litigation & Securities Arbitration Lawyers

SCHWAB CALIFORNIA TAX-FREE YIELDPLUS (SWYCX) INVESTOR ALERT–CLAIMS NOT COVERED BY THE CLASS ACTION SHOULD BE REVIEWED

Investors holding the SCHWAB CALIFORNIA TAX-FREE YIELDPLUS fund (SWYCX) MAY STILL POSSESS CLAIMS NOT COVERED BY THE YIELDPLUS CLASS ACTION. Any SWYCX investors not participating in a class or individual action should review their portfolios to determine whether losses in SWYCX give rise to a claim for recovery. Miller & Milove has Represented Schwab Yield Plus Investors in one of the Largest Arbitration Awards to Date.

 If you would like more information, please contact Miller & Milove, FINRA Securities ArbitrationAttorneys at: (619) 696-5200

The latest FINRA Arbitration Awards in favor of an individual Schwab Yield Plus investor was issued in favor of a Miller & Milove client in an amount exceeding $327,000. In Financial Industry Regulatory Authority Dispute Resolution (FINRA) case number 08-02173, a three person San Diego based FINRA Arbitration Panel awarded over $327,000 based on allegations of misrepresentations and material omissions in connection with Schwab Yield Plus, which was advertised by Schwab to be an ultra-short term bond fund. According to the FINRA arbitration awards database this FINRA Award is one of the largest Schwab Yield Plus investor recoveries to date. The Arbitration Award preceded the announcement on October 15, 2009, when the United States Securities and Exchange Commission declared that Charles Schwab & Co. is the target of likely civil regulatory enforcement proceedings in connection with the Schwab Yield Plus fund.

In addition to the Award against Charles Schwab & Co., the FINRA Panel tagged the parent corporation, Respondents Charles Schwab Corporation and Charles Schwab Investment Management Inc., the wholly owned fund manager, with liability jointly and severally in connection with the Schwab Yield Plus fund. The FINRA Awards database indicates that this recent Award is the largest to date holding the Schwab parent and the manager of Yield Plus legally responsible jointly and severally along with the Charles Schwab & Co. retail brokerage outfit.

On October 15, 2009, following the Miller & Milove Award, the Securities and Exchange Commission issued a Well’s Letter to Charles Schwab relating to the Yield Plus fund which notified Schwab that it is considering regulatory action. Miller & Milove arbitration counsel comments, that “in view of the recent national crisis triggered by Wall Street excesses it is shocking to most Charles Schwab Yield Plus investors that Charles Schwab & Co., with a reputation for efficient retail investor access to the markets, has not stepped up and responsibly addressed patent mistakes made in connection with the Yield Plus debacle.”

A class action involving Yield Plus and other Schwab funds is pending in a California Federal Court. The Federal Court has approved notice to all Schwab Yield Plus investors regarding the case and investors rights to participate in the Class Action. A deadline has been set for any investors desiring to opt-out of the class action. The notice includes details and instructions for participation in the lawsuit and potential recovery, outlines three specific classes already approved by the court as well as instructions for those who wish to opt out as a class member.

Action by any Schwab Yield Plus investor opt-outs must be received no later than December 28, 2009. The Court Notice may be viewed at www.hbsslaw.com/schw. Investors with substantial losses should consult with experienced securities Counsel concerning the option of remaining within the Class or opting out of the class and proceeding with individual representation.

If you invested in the SCHWAB YIELD PLUS THROUGH CHARLES SCHWAB & CO. and you wish to consider individual representation by Miller & Milove, please fill out the form below.

Read the Schwab Yield Plus/FINRA official press release at Prweb.com

If you would like further information about this case, please contact Miller & Milove at (619) 696-5200.