BEVERLY HILLS, Calif., June 26, 2008 (PRIME NEWSWIRE) -- Aidikoff, Uhl & Bakhtiari announces the filing of investor arbitration claims against 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 arbitrations allege that Charles Schwab omitted or misrepresented important information to investors including the YieldPlus funds safety, composition and risk level.
Increased yield potential-Ultrashort bond funds like the Schwab YieldPlus Funds have historically provided higher sustained yields versus money market funds, as their short duration helps minimize exposure to falling bond prices as rates rise. Even though the share price may fluctuate minimally, these funds offer lower risk than longer-term bond funds and only marginally higher risk than money market funds.
Schwab also emphasized that the safety of the YieldPlus Funds was enhanced by the short duration of holdings in its portfolio even though this was not accurate.
The brokers who sold the Schwab Yield Plus fund are not targets of arbitration filings, according to the investors' legal team (www.subprimelosses.com) 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. "Investors also have the right to pursue individual claims outside of the class action. Investors need to be aware of the consequences of pursuing a specific remedy and course of action."
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 in the pending Schwab YieldPlus 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 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 www.subprimelosses.com or by contacting an attorney.