SOURCE: Klayman & Toskes

October 16, 2009 14:04 ET

The Securities Law Firm of Klayman & Toskes Announces That the SEC Has Issued a Wells Notice to Charles Schwab Regarding the YieldPlus Fund

NEWPORT BEACH, CA--(Marketwire - October 16, 2009) - The Securities Law Firm of Klayman & Toskes, P.A. ("K&T") (, announced today that the U.S. Securities and Exchange Commission issued a Wells Notice to Charles Schwab (NASDAQ: SCHW) regarding its YieldPlus Fund. The YieldPlus Fund sold two classes of shares: Investor Shares (NASDAQ: SWYPX) and Select Shares (NASDAQ: SWYSX). A Wells Notice is a notification from a regulator which provides that it intends on recommending that enforcement proceedings be initiated against the recipient of the Notice for violations of securities laws. It also provides the recipient the opportunity to respond to the issues raised in the Wells Notice and convince the regulators that enforcement charges are unnecessary. The Notice is neither a formal allegation nor a finding of wrongdoing.

Presently, K&T represents many investors from across the nation who purchased shares of the YieldPlus Fund from Charles Schwab, in securities arbitration claims before the Financial Industry Regulatory Authority ("FINRA"). The claims allege that Charles Schwab marketed the YieldPlus Fund as an ultra-short bond fund that was a higher-yielding alternative to a money-market fund while seeking minimal changes in share price. However, based on Charles Schwab's explanation of the Fund, the claims allege that Schwab misrepresented and omitted material information concerning the nature and extent of the Fund's risk, and exposure to mortgage backed and related securities. K&T believes the issuance of the Wells Notice is a significant development, and supports the claims it has filed against Schwab on behalf of aggrieved investors.

Earlier this week, the Court in the YieldPlus Class Action, In Re Schwab Corp. Securities Litigation ("Class Action"), Case No. 08-cv-01510 WHA, issued a Notice of Pendency of Class Action which provided that any request for exclusion from the Class Action must be received by the claims administrator by December 28, 2009. K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant losses in the YieldPlus Fund, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, K&T conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally 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:

Retail and institutional investors who purchased shares of the YieldPlus Fund from Charles Schwab and sustained significant losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.

If you wish to discuss this announcement or have investment losses of $100,000 or more in Schwab's YieldPlus Fund, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at




Contact Information

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