Schwab Ordered to Face New York State’s Auction-Rate Suit
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Charles Schwab Corp. must face a lawsuit in which New York state accused it of falsely describing auction-rate securities as liquid investments without disclosing the risks, an appeals court ruled.
The San Francisco-based brokerage was sued by Andrew Cuomo in August 2009 when he was attorney general. A trial judge in Manhattan, Justice O. Peter Sherwood of state Supreme Court, granted Schwab’s motion to dismiss the case in 2011.