COLUMBUS, Ohio, April 18, 2008 (PRIME NEWSWIRE) -- Investigation by the securities law firm of David P. Meyer & Associates Co., LPA, continues into investment giant Charles Schwab (Nasdaq:SCHW) regarding the recent collapse of its Schwab YieldPlus Fund Select Shares (Nasdaq:SWYSX) and the Schwab YieldPlus Fund Investor Shares (Nasdaq:SWYPX) (the "YieldPlus Funds").
The investigation centers around allegations Charles Schwab omitted or misrepresented important information to investors, including the YieldPlus Funds relative safety, composition, and risk level. Specifically, the investigation has focused on the Funds exposure to higher-risk subprime mortgage-backed securities.
Returns from the YieldPlus Funds have plummeted recently as the subprime mortgage market has collapsed; year to date, the YieldPlus Funds are down 24%. The Funds are among the worst performers in the ultra-short bond category -- ranking last or near last in returns among similar investment vehicles.
"These mutual funds were marked by Charles Schwab as suitable alternatives to money market funds," said attorney David P. Meyer of David P. Meyer & Associates, Co., LPA. "We are receiving many calls from investors in these funds who were misled by Schwab as to the safety of these funds." Mr. Meyer adds, "It is not only the investors in the funds who were misled; Schwab's own employees and associated investment advisors who promoted these funds were misled by their firm." Mr. Meyer does not believe that the Schwab employees or investment advisors should be the target of claims by investors to recover their losses.
Investors who suffered substantial losses in the YieldPlus Funds should seriously consider pursuing their own individual arbitration claims as a potentially superior alternative to joining a securities class action. Several class action lawsuits have been filed against Charles Schwab in federal courts in California and Massachusetts concerning the YieldPlus Funds. Investors should be aware that if they stay in the class action and recover, they cannot also recover in a FINRA arbitration case.
The law firm of David P. Meyer & Associates Co., LPA, has joined an association of law firms in pursuing claims by individual and institutional investors when confronted with subprime and other mortgage-related investment losses. The other law firms are: Aidikoff, Uhl & Bakhtiari, of Beverly Hills, Calif.; Maddox, Hargett & Caruso, P.C., of Indianapolis, Ind. and New York, N.Y.; and Page Perry, LLC, of Atlanta, Ga. Collectively, the firms represent the interest of institutional and retail investors in disputes against investment firms like Charles Schwab.
If you suffered losses in the Schwab YieldPlus Funds, please visit our website, www.subprimelosses.com, or contact an attorney to discuss your legal rights.