COLUMBUS, Ohio, April 22, 2008 (PRIME NEWSWIRE) -- Dwindling returns by two Charles Schwab (Nasdaq:SCHW) funds, the Schwab YieldPlus Fund Select Shares (Nasdaq:SWYSX) and the Schwab YieldPlus Fund Investor Shares (Nasdaq:SWYPX) (the "YieldPlus Funds"), has led to a ongoing investigation by the securities law firm of David P. Meyer & Associates Co., LPA concerning the collapse of the Funds.
The YieldPlus Funds are now rated as high risk and received only one star from Morningstar. Year to date, the YieldPlus Funds are down 24%. In March, the YieldPlus Funds dropped 9.9%, the most among its peers in the ultra-short bond category. Ultra-short bond funds were marketed to investors as a higher-yielding alternative to money-market funds. In reality such funds have turned out to be far from safe investments due to exposure to subprime mortgage risks.
Investigation into the recent collapse of the YieldPlus Funds centers around allegations Charles Schwab omitted or misrepresented important information to investors, including the YieldPlus Funds relative safety, composition, and risk level. The investigation has focused on the Funds exposure to subprime mortgage risks.
"These funds were marketing to investors seeking the safety of money-market funds," said attorney David P. Meyer of David P. Meyer & Associates, Co., LPA. "Investors who purchased these funds have suffered billions of dollars in collective losses and they should seek legal advice from an attorney experienced in pursuing claims against brokerage firms."
Investors who have suffered substantial losses in the YieldPlus Funds should seriously consider pursuing their own individual arbitration claims as a potentially superior alternative to joining a class action. Class action lawsuits have been filed against Charles Schwab in the United States District Courts in California and Massachusetts concerning the YieldPlus Funds. Investors should be aware that if they stay in the class action and recover, they cannot also recover in a FINRA arbitration case.
David P. Meyer & Associates Co., LPA, has joined an association of law firms in pursuing claims by individual and institutional investors when confronted with subprime and other mortgage-related investment losses. The other law firms are: Aidikoff, Uhl & Bakhtiari, of Beverly Hills, Calif.; Maddox, Hargett & Caruso, P.C., of Indianapolis, Ind., Cleveland, Ohio, and New York, N.Y.; and Page Perry, LLC, of Atlanta, Ga. Collectively the firms represent the interest of institutional and retail investors in disputes against investment firms like Charles Schwab.
If you suffered losses in the Schwab YieldPlus Funds, please visit our website www.subprimelosses.com, or contact an attorney to discuss your legal rights.