Northstar Loses Claims Against Schwab On Appeal

Law360, New York (August 13, 2010, 7:41 PM EDT) -- A federal appeals court has held that Northstar Financial Advisors Inc. cannot allege claims in a proposed class action that Schwab Investments illegally deviated from the financial strategy of one of its bond funds by investing heavily in mortgage-backed securities in violation of the Investment Company Act of 1940.

The U.S. Court of Appeals for the Ninth Circuit on Thursday reversed a lower court’s decision that shot down Schwab’s bid to toss Northstar’s federal claims, finding that Section 13(a) of the ICA can only be enforced...
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