What is the Charles Schwab Corp Securities Litigation Settlement?
This case was brought as a class action alleging that Defendants made false and misleading statements and omissions in the registration statements and prospectus issued by the YieldPlus Fund during the period between May 31, 2006, and March 17, 2008, about the investment profile and objectives of the YieldPlus Fund. The Lead Plaintiffs allege that Defendants violated federal and state law in registering, marketing and selling the Fund as a stable bond fund which had “minimal” risk of a fluctuating share price. Lead Plaintiffs allege that the Fund was not “stable” and “safe,” because it was comprised of mortgage-backed securities and corporate finance bonds making the Fund riskier than represented, and eventually the true risks presented by the assets held by the Fund were revealed, resulting in losses to Fund investors. Defendants deny that they did anything wrong and that the Lead Plaintiffs or anyone else may recover alleged damages from any Defendant.
