Schwab YieldPlus Class Action Suits

Carl Saiontz

By Carl Saiontz
Posted May 9, 2008


Following the recent collapse of share prices for the Schawb Yield Plus Fund, many investors are exploring their legal options to recover money they lost. The lawyers at Saiontz & Kirk, P.A. represent investors who are pursuing individual claims against Charles Schwab for failing to properly disclose the nature of the risks associated with certain securities held by the bond fund. While Schwab YieldPlus Class Action lawsuits have been filed, individual investors who lost over $10,000.00 will likely be in a better position to recover their losses through an individual claim.

>>PRIOR POST (4/10/2008): Recover Schwab YieldPlus Losses

A class action suit was filed on behalf of investors who purchased Schwab YieldPlus Fund Select Shares (Nasdaq: SWYSX) and Schwab YieldPlus Investor Shares (Nasdaq: SWYPX) between March 17, 2005 and March 17, 2008. However, the Schwab class action lawsuit will focus on a class representative, whose interests may differ from individual investors. In addition, class action suits generally take substantially longer than individual arbitration claims and usually result in less of a recovery for individual investors.

The individual circumstances surrounding an investors decision to purchase YieldPlus shares will not be considered as part of a class action, which could result in less of a recovery for many investors. Charles Schwab promoted the Yield Plus funds as a safe alternative to money market funds or cash. Many investors who do not participate in the class action will be able to make a claim based on the unsuitability of the investment depending on the circumstances of their particular case. Through a class action, such an unsuitability claim could not be pursued.

Another major drawback to the class action lawsuit is the amount of time it will take to reach a conclusion. Given the scope of the Schwab Yield Plus class action, including the number of shareholders involved and the discovery which must be completed before the case can move forward, it may take several years for investors to see any reimbursement for their losses. By contrast, individual FINRA arbitration claims, which are being pursued by the lawyers at Saiontz & Kirk, P.A., could be resolved in less than a year.


For investors who have suffered losses in excess of $10,000.00, the lawyers at Saiontz & Kirk, P.A. are offering free consultations and claim evaluations to help review whether they may be in a better position to recover their losses through an individual claim, as opposed to the Schwab YieldPlus class action. In most cases, it is expected that investors will be in a better position to recover all of their losses through an individual arbitration claim, and will likely receive financial compensation in a much shorter amount of time.

If you, a friend or family member have experienced losses as a result of an investment in the Schwab YieldPlus fund, request a free consultation and claim evaluation.

2 Comments • Add Your Comments

  • Joan says:

    I lost almost $50,000 in this fund and would like to know if it is better to have an arbitration firm fight for some of this money back or to just stay in the class action suit.

    Posted on September 16, 2009 at 9:37 pm

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