Charles Schwab: Brokerage Settles with Investors
Charles Schwab (SCHW) has agreed to pay $200 million to settle claims that it misled investors on the amount of mortgage-backed securities held by its Schwab YieldPlus Fund (SWYSX), according to an Apr. 20 statement. A class action filed in 2008 alleged that the San Francisco-based brokerage incorrectly described the short-term bond fund, once the largest of its kind, as "safe." The case, in which plaintiffs sought damages of as much as $802 million, had been scheduled to go to trial in May.