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, 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, 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.
4 Comments • Add Your Comments
RICHARD says:
I HAVE LOSSES IN TWO CHAS SCHWAB FUNDS.
SWYCX $122,159.
SWYSX $69,779.
Posted on May 28, 2008 at 2:58 pm
Bonnie says:
My father has suffered a similar loss with the YieldPlus fund with Chas. Schwab. Are you planning to join the class action or filing a claim with FINRA? If you are planning on filing with FINRA, do you plan to hire an attorney first or complete the claim form and then follow-up with an attorney if it is necessary?
Please share your plans.
Posted on May 30, 2008 at 1:33 am
Denise says:
We have a many family accounts at Schwab that have lost a total of $32331 in the Schwab Yield Plus funds.
Two of the account’s losses owned by the same person are for more than $23,000.
Posted on June 17, 2008 at 11:40 am
Richard says:
I have recieved a statement regarding the Charles Schwab Securities litigation and would like to know what is in store. I recall investing approx $50K during the stated period and the money seems to be gone.
Will I be mailed my settlement or what will happen when this settles?
Posted on October 14, 2010 at 12:56 pm