Napoli Bern Ripka Law Firm

Plaintiffs' Personal Injury Law Firm

Charles Schwab YieldPlus

Napoli Bern Ripka LLP is fighting on behalf of investors to recover losses caused by fraudulent misrepresentations about the Charles Schwab Yield Plus Funds (ticker symbols: SWYPX and SWYSX). Charles Schwab represented that the funds were safe and conservative ultra-short term bonds that were similar to money market accounts and certificates of desposits (C.D.'s).

In an effort to increase the funds performance, fund managers decided to heavily bet on mortgage backed securities, including risky subprime loans. Despite stated fund objectives of seeking "high current income with minimal changes in share price", over 40% of the funds' assets were placed in one industry, and many of them collateralized detbt obligations.

Following the collapse of the subprime mortgage market in 2008, Schwab YieldPlus saw losses in excess of 25% during early 2008. While Schwab blames the Yield Plus problems on the credit crunch and catastrophic market turns outside their control, the losses were clearly a result of Schwab's improper investment strategy and a failure to diversify.

If you suffered losses based on Schwab's misrepresentations, we can help you.

Personal Injury

Medical Malpractice