BEVERLY HILLS, Calif., Aug. 1, 2008 (PRIME NEWSWIRE) -- Aidikoff, Uhl & Bakhtiari announces the filing of 12 FINRA arbitration claims with damages of more than $1.3 million during the month of July 2008. The arbitration claims were filed 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, risk level and comparison as a suitable money market alternative.
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.
"We believe that investors have recourse and may be able to recover damages as a result of purchasing and holding shares of Yield Plus," said attorney Ryan K. Bakhtiari of Aidikoff, Uhl & Bakhtiari. "Investors who have lost more than $10,000 should be aware of their rights."
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.
More information is available at www.subprimelosses.com or by contacting an attorney.