Investors Pursue Claims Regarding Schwab YieldPlus Fund

The Beck Law Firm, LLC has been engaged to represent investors against Charles Schwab and Company, Inc. who were sold shares of the Schwab YieldPlus fund.  According to the arbitration claim filed in the case, the investors, who sought to protect and preserve their capital, were sold the YieldPlus fund as an alternative to money market funds. This case, as well as other claims filed by investors against Schwab, allege that Schwab marketed the YieldPlus fund as a sale alternative to money market funds, that it was invested in a large and well-diversified portfolio and would return higher yields with only marginally higher risks.  The claims allege that, in fact, the fund was not well diversified, but had significant exposure to sub-prime mortgage risk, and invested in securities with longer durations than many comparable ultra-short bond funds.  As of June 30, 2008, the YieldPlus Select shares had a one-year total return performance of -31.60%, losing nearly a third of its value in a year. 

Currently, court cases have been filed seeking class-action status on behalf of investors in the YieldPlus fund.  The Beck Law Firm, LLC believes that may investors may be better served by pursuing arbitration claims before FINRA Dispute Resolution.  If you've purchased shares of the YieldPlus fund and have suffered losses, contact Joel Beck today for a brief, complimentary consultation.