NEW YORK, Aug. 25, 2008 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, www.nasd-law.com, announced today that it filed another securities arbitration claim against Charles Schwab (Nasdaq:SCHW) with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution. The claim was filed on behalf of investors who purchased Schwab's YieldPlus Fund (SWYPX) and YieldPlus Select Fund (SWYSX). The Claimants have alleged that they purchased the YieldPlus funds as an alternative to a money market fund where they sought income with little to no risk. Instead, the value of their investments has experienced significant declines.
Klayman & Toskes remains at the forefront of representing investors against Charles Schwab as the firm continues to file numerous arbitration claims with FINRA to recover losses sustained in the YieldPlus funds. According to Jahan K. Manasseh, an attorney with Klayman & Toskes, "Our firm has been filing arbitration claims against Charles Schwab for several months now, yet we feel that we have only seen the tip of the iceberg. It appears that the vast majority of YieldPlus fund investors have yet to take legal action."
According to investors, Charles Schwab marketed its YieldPlus funds as an ultra-short bond fund that was a higher-yielding alternative to money-market funds, while seeking minimal changes in share price. However, it appears that Charles Schwab misrepresented and omitted material information concerning the nature and extent of the funds' concentration in the subprime market and resulting risk, and exposure to mortgage backed and related securities.
Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced losses of $25,000 or more in the Schwab YieldPlus funds, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim may obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our website: http://www.nasd-law.com/documents/classvr.pdf
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered losses in the Schwab YieldPlus funds, and as a result of the credit crisis and subprime fallout overall. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you lost $25,000 or more in the Schwab YieldPlus funds and you wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.