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Securities
Fraud
Mortgage-Backed Securities

In re Charles Schwab Corp. Securities Litigation

Published: Jun. 12, 2010 | Result Date: May 25, 2010 | Filing Date: Jan. 1, 1900 |

Case number: 3:08-CV-01510-WHA Settlement –  $235,000,000

Court

USDC Northern


Attorneys

Plaintiff

Peter E. Borkon

Steve W. Berman
(Hagens, Berman, Sobol & Shapiro LLP)

Erin K. Flory

Sean R. Matt
(Hagens, Berman, Sobol & Shapiro LLP)

Reed R. Kathrein
(Hagens, Berman, Sobol & Shapiro LLP)


Defendant

Craig V. Martin

Dorothy L. Fernandez

Darryl P. Rains

Erik J. Olson
(Morrison & Foerster LLP)

Eugene G. Illovsky


Facts

Investors in the Schwab YieldPlus bond mutual fund sued Charles Schwab Corp. and its subsidiaries claiming it failed to disclose all the risks of investing in the fund and the amount of its holdings in mortgage-backed securities.

Contentions

PLAINTIFFS' CONTENTIONS:
The investors argued that Charles Schwab incorrectly described YieldPlus as safe and failed to disclose the amount of its holdings in mortage-backed securities.

Result

The parties settled for $235 million.


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