Charles Schwab YieldPlus Settlement Offers for Pennies on the Dollar
The Wall Street Journal is reporting that Charles Schwab is attempting to offer only pennies on the dollar to settle Schwab YieldPlus lawsuits being pursued by investors who lost money as a result of their investment in the bond fund. The lawyers at Saiontz, Kirk & Miles, P.A. are pursuing financial fraud claims on behalf of individuals who suffered losses in excess of $10,000 due to the fund’s heavy investment in mortgage-related securities. The minimal amount of the initial Schwab settlement offers highlights the importance for investors to have representation to make sure they are properly reimbursed for losses suffered.
The Schwab YieldPlus settlement offers have ranged from only one cent to 12 cents for each dollar lost as a result of the securities fraud. The company is attempting to settle the largest cases first, but the offers are not a reasonable attempt to resolve the legitimate claims investors have experienced losses without being adequately informed about the risks.
>>PRIOR POST (4/10/2008): Schwab YieldPlus Select Losses may be recoverable
Schwab YieldPlus is an ultra-short bond fund which was advertised as an alternative to money market funds for conservative investors looking for a slightly higher yield while preserving their capital. Although investors were told that the fund’s goal was to have minimal changes in the share price, the fund has dropped more than 25% over the first four months of 2008.
The dramatic losses suffered by Schwab Yield Plus investors were directly tied to unreasonably heavy holdings involving mortgage-related securities, particularly those involving subprime loans. For a conservative investment fund, the brokerage failed to adequately disclose the true nature of the risk they were exposing people to by betting on these newer securities, which had not been tested through market cycles.
CHARLES SCHWAB YIELD PLUS SETTLEMENT LAWYERS
The investment fraud lawyers at Saiontz, Kirk & Miles, P.A. represent individuals who have lost money as a result of an investment in the Schwab YieldPlus Fund or Morgan Keegan Bond Funds, which have also seen substantial losses tied to the subprime mortgage crash. For investors who have lost more than $10,000, they will be in a better position to recover their financial losses with representation from a lawyer, instead of settling for pennies on the dollar. There are no fees or expenses unless a recovery is obtained.
To obtain a claim evaluation by our Charles Schwab YieldPlus lawyers, request a free consultation.
