The Firm has recently filed arbitration claims on behalf of individual and institutional investors in California who suffered losses in the Schwab YieldPlus Fund (Ticker symbols: SWYSX, SWYPX). The arbitration claims allege that Charles Schwab & Co., Inc. ("Schwab") and the manager of the YieldPlus Fund misrepresented or failed to disclose material facts pertaining to the Fund, namely, that this was an ultra-short bond fund that was safe, liquid, and similar to a CD or money market fund but with a slightly higher return.

Based on Schwab's marketing, the Fund attracted many conservative investors, including retirees, businesses, and others seeking a safe alternative to cash. As the Fund grew it became highly concentrated toward mortgage-backed securities, and when the market for these securities deteriorated, their price and their liquidity did as well. Schwab subsequently made continuing misrepresentations to its existing YieldPlus Fund investors intended to persuade them not to liquidate their holdings.

The Fund held assets of $13.5 billion on July 31, 2007, but the fund went into a spectacular free fall that saw assets dwindle to just $.507 billion as of May 31, 2008.

If you purchased shares in the Schwab YieldPlus Fund and sustained losses in this investment, you may have legal claims based on the above misrepresentations and omissions to disclose material facts. Please contact us to discuss your potential claims and options.