SOURCE: Klayman & Toskes

June 17, 2008 10:20 ET

Notice to All Investors in the Schwab Yield Funds From the Securities Law Firm of Klayman & Toskes

NEW YORK, NY,--(Marketwire - June 17, 2008) - The Securities Law Firm of Klayman & Toskes, www.nasd-law.com, said today that following its announcement that it is investigating the Schwab Yield Plus Select Fund (NASDAQ: SWYSX) and Schwab Yield Plus Fund (NASDAQ: SWYPX) (collectively referred to as the "Schwab Yield Funds"), the Law Firm has received numerous inquiries from investors who sustained losses in the Schwab Yield Funds. Accordingly, Klayman & Toskes will be continuing to pursue claims on behalf of investors who have suffered losses as a result of the credit crisis and subprime fallout. Investors who lost money in the Schwab Yield Funds and who wish to inquire about the class action, Case No. 08-cv-01510, should contact Klayman & Toskes to discuss all of their legal options. Additionally, investors should consider whether they should file an individual arbitration claim.

Over the past year, the Schwab Yield Funds have declined in value due to the Funds' exposure to subprime related holdings and mismanagement of the Funds. In connection with its sales of the Schwab Yield Funds, Charles Schwab (NASDAQ: SCHW) did not inform investors that the Funds' managers had over-concentrated the Funds' assets in various 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.

Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced losses of $50,000 or more in the Morgan Keegan Bond Funds, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim may obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf

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