NEW YORK, Sept. 15, 2008 (GLOBE NEWSWIRE) -- The law firm of Napoli Bern Ripka, LLP announced today that a claim was filed with FINRA (Financial Industry Regulatory Authority) against Charles Schwab & Co. The claim was filed on behalf of an investor who seeks damages for losses sustained in the Schwab YieldPlus Select Fund (SWYSX) (SWYPX).
The FINRA Statement of Claim alleges damages for breach of fiduciary duty, breach of contract, unsuitability, over-concentration and misrepresentations and omissions relating to the firm's failure to properly disclose the risks associated with the YieldPlus Select Fund.
The Statement of Claim alleges that Charles Schwab represented that the YieldPlus Select Funds (SWYSX) was a safe alternative to money market funds that emphasized preservation of capital and income production. Charles Schwab also represented that its YieldPlus fund was designed to provide "high current income with minimal changes in share price" and that this objective would be accomplished by investing in a "well-diversified" portfolio of bonds.
According to Vincent J. Imbesi, who heads the firm's securities arbitration division, "Representatives employed by Charles Schwab marketed the fund to investors as an alternative to money market funds. Investors relied on Charles Schwab's representations when they purchased the SWYSX fund, to their detriment."
The firm is representing investors on an individual basis, not in a class action. The firm believes that investors have a better chance of recovering more money, in a shorter time frame, by filing an individual arbitration, compared to participating in a class action. The firm does not charge a legal fee unless it recovers money for its clients. Investors can obtain a free legal consultation by contacting Vincent J. Imbesi at 1 (888) 529-4669. The firm will represent purchases of the YieldPlus funds regardless of the amount lost (most firms requires a minimum loss of $50,000.)
The law firm of Napoli Bern Ripka, LLC has obtained over two billion dollars for its clients. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.