NEW YORK, July 3, 2008 (PRIME NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, www.nasd-law.com, announced today that it filed a securities arbitration claim against Charles Schwab (Nasdaq:SCHW) on behalf of an investor who purchased Schwab's YieldPlus Fund (Nasdaq:SWYPX). The Law Firm is also processing claims on behalf of investors who lost money in Schwab's YieldPlus Select Fund (Nasdaq:SWYSX). While Charles Schwab has offered to settle claims with investors of the YieldPlus Funds, those offers have been miniscule in comparison to the large sums of money lost in the Funds. As a result, many clients of Klayman & Toskes have declined these paltry offers, and are proceeding with an individual arbitration claim.
Klayman & Toskes continues to investigate the sales practices and representations of Charles Schwab in connection with the marketing of its Schwab YieldPlus Funds. According to investors, Charles Schwab marketed the Schwab YieldPlus Funds as an ultra-short bond fund that was a higher-yielding alternative to money-market funds, while seeking minimal changes in share price. However, it appears that Charles Schwab misrepresented and omitted material information concerning the nature and extent of the Fund's concentration in the subprime market and resulting risk and exposure to mortgage backed and related securities.
Over the past year, the Schwab YieldPlus 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 YieldPlus Funds, Charles Schwab 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 YieldPlus Funds received a mutual fund concentrated in speculative, risky mortgage backed securities. The manner in which the Schwab YieldPlus 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 $25,000 or more in the Schwab YieldPlus 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
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered losses in the Schwab YieldPlus Funds, and as a result of the credit crisis and subprime fallout as a whole. Klayman & Toskes, 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 lost $25,000 or more in the Schwab YieldPlus Funds and you wish to discuss your legal options at no obligation, 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 http://www.nasd-law.com.