Regulators Join Fight To Block Schwab's Class Action Waiver

Law360, New York (May 9, 2013, 6:16 PM EDT) -- State regulators and investor organizations Wednesday joined the Financial Industry Regulatory Authority in its appeal against a FINRA panel decision to allow Charles Schwab Corp. to prevent clients from filing class actions.

The regulators and investor organizations argued in a series of briefs that the panel exceeded its authority and greatly endangered the ability of clients to file claims.

The panel wrongfully dismissed disciplinary complaints against Schwab, giving the broker the green light to require clients to sign class action waivers before entering arbitration, according to...
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