SOURCE: Klayman & Toskes, P.A.

June 10, 2008 12:11 ET

Klayman & Toskes Encourages Investors Who Have Losses in Excess of $50,000 in the Schwab Yield Funds to Consider All of Their Legal Options

NEW YORK, NY--(Marketwire - June 10, 2008) - The Securities Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that investors who lost money in Schwab Yield Plus Select Fund (NASDAQ: SWYSX) or Schwab Yield Plus Fund (NASDAQ: SWYPX) (collectively referred to as the "Schwab Yield Funds") and who wish to inquire about the class action, Case No. 08-cv-01510, should contact K&T to discuss all of their legal options.

According to K&T's investigation so far, investors of the Schwab Yield Funds were assured that the Schwab Yield Funds were "safe alternatives" to money market funds and cash holdings. However, between July 1, 2007 and April 30, 2008, investors lost about $1.3 billion in the Schwab Yield Funds. As it turns out, much of the losses were sustained as a direct result of subprime holdings in the Schwab Yield Funds.

In connection with its sales of the Schwab Yield Funds, Charles Schwab (NASDAQ: SCHW) failed to inform investors that the Funds' managers had concentrated the Funds' assets in collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs"), and collateralized mortgage obligations ("CMOs"), collectively referred to as "collateralized debt obligations" ("CDOs") or "structured financial products." These securities were and are thinly traded and illiquid, and often difficult to value. Essentially, investors of the Schwab Yield Funds received a mutual fund concentrated in speculative, risky mortgage backed securities. The manner in which the Schwab Yield Funds were invested made them more like hedge funds rather than money market funds.

If you lost $50,000 or more in the Schwab Yield Funds, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, for a free consultation regarding your legal rights and remedies. You may also visit us on the web at http://www.nasd-law.com.

Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

NASDAQ: SWYSX
NASDAQ: SWYPX
NasdaqGS: SCHW

Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.
    888-997-9956