Charles Schwab YieldPlus Fund Lawsuits
Investors in Charles Schwab YieldPlus Funds may be entitled to recover some of the losses which have been suffered in recent months. False and misleading statements were made about the funds lack of diversification and the extent of the investment in risky sub-prime mortgage securities. A Charles Schwab class action lawsuit has been filed , however, individuals who lost more than $10,000 should consider filing their own Charles Schwab YieldPlus Fund lawsuit to recover their investment losses.
The financial fraud lawyers at Saiontz & Kirk, P.A. are reviewing potential Charles Schwab lawsuits for individuals who purchased shares of:
- Schwab YieldPlus Funds Investor Shares (Nasdaq: SWYSX)
- Schwab YieldPlus Funds Select Shares (Nasdaq: SWYPX)
The Schwab Yield Plus investment funds were initially offered in November 2004 as a safe alternative to money market accounts. They were designed to preserve capital while generating income, with relatively low risk. Contrary to the representations made to investors, Charles Schwab has invested more than 50% of the funds assets in the mortgage industry. As a result of their concentration in this single risky industry, substantial losses have been suffered.
The funds investments in sub-prime mortgage backed securities are considered risky because they are rarely traded and do not have active price quotes that are maintained. These new types of mortgage securities have not been tested through market cycles and fund managers failed to minimize the risk of losses by diversifying. In addition, investors were not informed about the extent of the risk they were exposing themselves to.
Following the collapse of the sub-prime mortgage market in July 2007, investors in Charles Schwab Yield Plus funds have suffered disproportionate losses, and they may have legal options to recover some of their investment. Similar lawsuits are being pursued by our stock fraud lawyers on behalf of investors in Morgan Keegan bond funds, which were also heavily invested in these collateralized debt obligations.
Charles Schwab class action suits have been filed for investors who purchased shares in Schwab YieldPlus funds between March 17, 2005 and March 18, 2008. However, individual lawsuits are also being reviewed as a result of the false and misleading statements made by underwriters, investment advisors and fund managers regarding the diversification of the funds.
If over $10,000 has been lost as a result of an investment in one of these funds, you or family member may be better protected by an individual Charles Schwab Fund lawsuits. Request a free consultation and claim evaluation.
19 Comments • Add Your Comments
William says:
Hello,
I have lost approx. $5000. in this fund before i sold. I definetly feel I have been mislead. I repeatedly contacted Schwab about the quality and
content of the portfolio and was told everthing was as descibed in the prospectus.
Posted on April 2, 2008 at 11:05 pm
william says:
I purchased just over $100,000 of the above fund in May of 2003, prior to when you indicate the fund was first offered. I was told it was a safe investment similar to a money market from which the funds where taken from. This is from my wife’s IRA.
Posted on April 3, 2008 at 10:35 am
Dennis says:
I joined the Schwab Private Client in late 2004. Shortly after Schwab converted my Value Advantage funds to Yield Plus. After loosing 20% they converted them back to Value Advantage!!
My loss was probably around $40,000. Is a personal lawsuit better than the class action? What would a suite cost me?
Thanks,
Dennis
Posted on April 14, 2008 at 10:24 am
Austin Kirk says:
For any investment losses in excess of $10,000, an individual Charles Schwab lawsuit should be considered. Our lawyers are providing free consultations and claim evaluations to help investors determine if they may be entitled to recover investment losses. If a case is pursued, there are no fees or expenses charged unless a recovery is obtained.
To review a potential claim, call (800) 522-0102 or request a claim evaluation on-line.
Posted on April 16, 2008 at 11:01 am
curt says:
Lost $30,000 in Schwab Yeild Plus. Was told by Schwab Broker in the Middle of August 2007 that this fund had no sub prime risk. If I had known, I would have changed funds.
Posted on May 21, 2008 at 7:59 am
pat says:
Lost much more than the above resonses. Felt this was a money market equivalent safe fund.
Posted on June 5, 2008 at 7:34 pm
victoria says:
I lost over $100,000.00 in the Schwab Yield Plus Fund. I was told that although my return would be low, my money was safe while we continued to diversify my portfolio. I was lead to believe I would not lose any of the principle. At one time over 50% of my total retirement portfolio was in this fund (recommended by Charles Schwab). My husband and I worked for over 35 years to build our retirement portfolio, and to be mislead by Charles Schwab investors like this is total fraud. Why would anyone trust Charles Schwab as their financial institution after this misleading and devastating advice? Why has the public not heard about this through the national news? I am retired and I feel as though people who are looking for an investment company should know about this situation and the extent of loss incurred by Schwab’s misrepresentation. I am sure many people would not trust Charles Schwab with their hard earned money. I talked to “Chuck” and he lied!!!!!!!!!!
Posted on June 19, 2008 at 11:35 am
john says:
I invested in the yield plus because the prospectus offered more yield with only “slightty” more risk. By the time I sold in Feb 2008, I had lost over $36,000.
Posted on September 20, 2008 at 11:08 am
Rick says:
What a rip-off! What mismanagement! People investing safe money in what was repeatedly described as the next thing to a money-market fund. It will a travesty if “talk to Chuck” does not reimburse good folks for the thousands of dollars lost per person. I’m furious and I won’t give up!
Posted on January 14, 2009 at 12:12 am
steve says:
I too was parking funds in an ultra-safe “money-market equivalent” until I had a chance to safely diversify this money into stocks. I smelled something rotten in Denmark (or Phoenix) and called in early 2008 to ask about sub-prime exposure . . . it was described as minimal, less than 5%. We all know this wasn’t true. I barely escaped at 20% down, avoiding the additional 20% that it went down within a short time of my withdrawal. I lost around $30K.
I’m convinced the class action is not the way to go but since this seems kind of cut and dry I’m considering filing my own FINRA arb and basically using the material in the class action to support my complaint.
Any comments from other Yield Plus victims?
Posted on January 21, 2009 at 1:47 pm
Rick says:
What a massive rip-off! I asked to put my money into a MM fund and was told by the rep that YieldPlus was just as safe with slightly more yield. This was egregious misrepresentation! Please send information on what type of suit I can file. I’m furious about this subject!
Posted on March 9, 2009 at 1:10 am
William says:
Schwab, through its one of its agents led me to believe that my investment in the Schwab Yield Plus Fund was safe and a good place in which to invest my money for earnings. It trusted Schwab. That was a huge mistake. ]
To date, I lost half of my investment. Were I to opt out now
I would guarantee that my loss is permanent.
A short while ago I spoke to a representative of the Glardi law firm in California and was informed that at present they do not know whether of not there is enough evidence to go forward with a class action against Schwab. Big disappointment
Posted on December 16, 2009 at 5:10 pm
mark says:
I was not aware of the class action Schwab Yield Plus lawsuit. I just did a little research and found Yield Plus share holders had to opt out of the class action lawsuit December 28, 2009. Can anyone confirm it is not possible to pursue an individual financial fraud claim?
“A federal court overseeing the Charles Schwab YieldPlus class action lawsuit has set a deadline of December 28, 2009, for members of the class to opt-out and pursue their own individual financial fraud claims”
Posted on May 9, 2010 at 10:47 pm
camille says:
I was lucky to change from Schwab prior to the meltdown, but can verify that they represented Yield plus as very safe with a higher yield. I’d held it until I moved accounts and count my blessings everyday I changed brokerages.
They also represented Lehman Bros as ultra safe. I’d questioned them about amount they wanted me to invest and lost part of it.
I’m surprised some of them aren’t in jail.
Posted on May 16, 2010 at 2:24 pm
mike says:
I was overweighted in this fund the same way a lot of the folks above were: it seemed, and was presented to investors, as an ultraconservative short-bond fund that was a good place to park money during turbulent times. i got out with relatively few losses (lucky!) because i kept looking at the chart and thinking “this shouldn’t be acting this way–IF schwab was telling me the truth in the fund description.” Like I said, I was lucky but I know tons of people weren’t. What kills me is that these people were being CAUTIOUS, not speculative, with their life savings in a tough market…. and Chucky-boy still found a way to take them to the cleaners with this totally misrepresented fund. Sick!
Posted on December 22, 2010 at 8:42 am
james says:
SCHWAB PRIVATE CLIENT PROGRAM IS SMOKE AND MIRRORS… A FEE BASED SERVICE THAT CLAIMS FACE TO FACE APPTS AFTER YOU SIGN A CONTRACT TO PAY A FEE…I AM A FORMER EMPLOYEE AND HAD MANY SLEEPLESS NIGHTS AFTER I SOLD THIS PROGRAM AND BEGGED MANAGEMENT TO PROVIDE THE SERVICE IT CLAIMS TO HAVE SOLD TO ITS CUSTOMERS.. NOW I AM IN A LEGAL SITUATION. I WENT TO MY MANAGER WITH FEARS, THEN THE OMBUDSPERSON ( THIRD PARTY PERSON PUT IN A FIRM BY THE SEC FOR INVESTOR PROTECTION) AND NOTHING.. NOW I AM BEING SUED BY SCHWAB.. ARE YOU KIDDING ME???? GET SOME INTEGRITY SCHWAB, STOP BULLYING INVESTORS AND EMPLOYEES. “TALK TO CHUCK” I WISH I COULD TALK TO CHUCK TO TELL HIM INTERNALLY HOW I WAS BULLIED.. WHISTLE PROTECTION ACT WHERE ARE YOU?
Posted on September 2, 2012 at 7:08 am