NY AG Appeals Dismissal Of ARS Suit Against Schwab

Law360, New York (November 30, 2011, 2:43 PM EST) -- New York's attorney general on Tuesday appealed a lower court's dismissal of his lawsuit alleging that Charles Schwab & Co. Inc. didn't warn its customers about the inherent risks of ultimately doomed auction rate securities.

According to then-State Attorney General Andrew Cuomo's 2009 lawsuit, Charles Schwab told its customers that ARS were safe, liquid investments even though it knew their structure made it possible for broker-dealers to decimate the market if they stopped propping up the market through floor bids — which is exactly what they...
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