Schwab Can Face Calif. Claims In MBS Suit: Judge

Law360, New York (March 9, 2011, 1:53 PM EST) -- A federal judge ruled Tuesday that a class of investors claiming Charles Schwab & Co. Inc. deviated from the strategy of a bond fund by investing heavily in mortgage-backed securities can move ahead with its California state law claims.

Judge Lucy H. Koh of the U.S. District Court for the Northern District of California found the plaintiffs could pursue their claims under the California Unfair Competition Law against Schwab despite a previous appellate court ruling in a similar case that went the other way.

According to...
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