Napoli Bern Ripka, LLP Blog

Napoli Bern Ripka, LLP Files Another FINRA Arbitration Claim Against Charles Schwab & Co.

Investor Seeks Damages for Lost Value of

Schwab YieldPlus Select Fund -- SWYSX

 Our firm filed another arbitration claim 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).

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) and the YieldPlus Fund Investor Funds (SWYPX) were safe alternatives to money market funds that emphasized preservation of capital and income production. Charles Schwab also represented that its YieldPlus funds were 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.

Representatives employed by Charles Schwab marketed the funds to investors as an alternative to money market funds. Investors, including the client we are representing in the subject arbitration, relied on Charles Schwab's representations when they purchased the SWYSX and the SWYPX funds, to their detriment.

 
Investors who purchased the Charles Schwab YieldPlus can get more information by visiting www.napolibern.com Investors can obtain a free legal consultation by contacting Vincent J. Imbesi at 1- (888) 529-4669.