BIRMINGHAM, Ala., May 29, 2008 (PRIME NEWSWIRE) -- The law firm of Burke, Harvey & Frankowski, LLC (www.bhflegal.com) announced today that it has filed a FINRA (Financial Industry Regulatory Authority) arbitration claim against Charles Schwab & Co. The investor seeks damages for losses sustained in the Schwab YieldPlus Select Fund (SWYSX).
The FINRA Statement of Claim alleges damages for breach of fiduciary duty, breach of contract, unsuitability, and misrepresentations and omissions relating to the firm's failure to adequately disclose the risks associated with the YieldPlus Select Fund.
The Statement of Claim further alleges that Charles Schwab represented that the YieldPlus Select Funds (SWYSX) and the YieldPlus Fund Investor Funds (SWYPX) were safe alternatives to money market funds that emphasized principal preservation and income production. Charles Schwab also represented that its YieldPlus funds were designed to provide "high current income with minimal changes in share price" and that this objective would be accomplished by investing in a "well-diversified" portfolio of bonds with durations of one year or less.
According to Richard Frankowski, a partner at Burke, Harvey & Frankowski, LLC, "Charles Schwab marketed the funds to many investors as a safe, higher paying alternative to money market funds. We believe that Schwab's representations about the funds' safety and underlying investment diversification were not accurate. Many investors around the country who purchased either the SWYSX or the SWYPX funds relied on these misrepresentations to their detriment."
While class action lawsuits have been filed against Charles Schwab & Co., Frankowski suggests that investors consider filing individual arbitrations. "Arbitration may be a much more efficient process for litigating claims against Charles Schwab," said Frankowski. "Class actions often take years to conclude and frequently result in settlements that pay investors less than they might achieve in arbitration."
Charles Schwab YieldPlus investors can get more information by visiting bhflegal.com. Investors can obtain a free legal consultation by contacting Richard Frankowski at 1-888-930-9091.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.