BEVERLY HILLS, Calif., May 8, 2008 (PRIME NEWSWIRE) -- Investigation by the securities law firm of Aidikoff, Uhl & Bakhtiari continues into investment giant Charles Schwab (SCHW) regarding the recent collapse of its Schwab YieldPlus Fund Select Shares (SWYSX) and the Schwab YieldPlus Investor Shares (SWYPX) (the "YieldPlus Funds").
The investigation centers on the allegations that Charles Schwab omitted or misrepresented important information to investors including the YieldPlus funds safety, composition and risk level.
The brokers who sold the Schwab Yield Plus fund are not targets of investor claims, according to the investors' legal team which includes the firms of Aidikoff, Uhl & Bakhtiari, of Beverly Hills, Calif.; Maddox, Hargett & Caruso, P.C., of Indianapolis, Ind. and New York, N.Y.; Page Perry, LLC, of Atlanta, Ga.; and David P. Meyer & Associates Co., L.P.A., of Columbus, Ohio.
"Investors should be aware of the pending class action," said attorney Ryan K. Bakhtiari of Aidikoff, Uhl & Bakhtiari. "The class case has certain pitfalls that investors need to be aware of in selecting an attorney. Most investors will fare better by filing individual arbitrations."
Important Facts to Consider Prior to Joining A Schwab Yield Plus Class Action
-- The pending Schwab Yield Plus class action Class Period is March 17, 2005 to March 17, 2008. Investors who made purchases prior to March 17, 2005 are not represented and will have no right to recovery in the Class Action.
-- In the case of Schwab Yield Plus losses, many investors sought safe, liquid, cash investments but were sold a product that was, in reality, much different. Such investors will have viable claims based on the investment's unsuitability. Because a suitability claim is dependent on an individual's circumstances, this claim cannot be prosecuted on a class wide basis.
-- Investors with significant losses are unlikely ever to be made whole in a Class Action. Class action representation may be attractive where individual losses are small so that any one investor may not have an economic interest in pursuing the case. However, investors who have lost more than $20,000 should strongly consider pursuing their rights on an individual basis.
-- Class actions are filed by attorneys seeking to represent all investors who have suffered a common wrong or purchased the same investment. Classes in securities cases are typically represented by the investor with the largest claim at stake. This often means that state pension funds or institutional investors will choose the attorneys and will be the ones who work on the strategy of the case. The interests of the class representative may not always be aligned with your interest; a specific example of this potential conflict is the inability to pursue suitability claims.
-- Class actions sometimes create hurdles to recovery for individual investors including depositions and motion practice which are generally not permitted in securities disputes decided before FINRA. The FINRA arbitration process can be completed in approximately 12 months, recovery through a Schwab Yield Plus class action may take several years.
More information is available at http://www.subprimelosses.com/charles-schwab.php or by contacting an attorney.