HARTFORD, Conn., March 25, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California against Charles Schwab Corporation ("Charles Schwab" or the "Company") (Nasdaq:SCHW) on behalf of all persons who purchased Schwab YieldPlus Funds Investor Shares (Nasdaq:SWYPX) or Schwab YieldPlus Funds Select Shares (Nasdaq:SWYSX) from March 17, 2005 to March 18, 2008, inclusive (the "Class Period").
The Complaint charges that Charles Schwab and certain of the funds' underwriters, investment advisers, officers and directors violated federal securities laws by issuing materially false statements regarding the diversification of these funds and the extent of investments assigned to sub-prime mortgage backed and related securities. Specifically, the Complaint alleges the funds' registration statements and prospectuses contained untrue statements of material facts, and omitted important information regarding the funds' investments.
On November 15, 2004, the Company began offering the Schwab YieldPlus investment funds through a registration statement and prospectus. The YieldPlus funds are advertised by the defendants as 'a safe alternative to money market funds that preserve principal while being designed with your income needs in mind.' Throughout the Class Period the Company claimed the funds were investments in a large, well-diversified portfolio, that a seasoned team of taxable bond portfolio managers actively managed the funds, and that investment in Schwab YieldPlus would return higher yields on cash with only marginally higher risk. Unbeknownst to investors, more than 50 percent of the funds' assets were invested in the mortgage industry. Since July of 2007, the share price for the funds has fallen 18 percent.
If you are a member of the class, you may, no later than May 16, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.