Schwab To Pay $200M To Settle Investor Action

Law360, New York (April 20, 2010, 3:43 PM EDT) -- The Charles Schwab Corp. has agreed to shell out $200 million to settle the remaining claims in an investor class action that alleged the investment company mismanaged its YieldPlus ultra-short bond fund by investing heavily in mortgage-backed securities.

The settlement, under which Schwab admits no liability, “allows the company to avoid the distraction and uncertainty of a trial” and a possible appeals process but is still subject to court approval, the brokerage said Tuesday.

The agreement comes several weeks after Judge William Alsup of the U.S....
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