NY AG Gets Charles Schwab ARS Claims Revived

Law360, New York (August 27, 2013, 2:00 PM EDT) -- Charles Schwab & Co. Inc. must face the New York attorney general's allegations that it misled investors about its auction-rate securities practices, a state appeals court ruled Tuesday, reviving pre-2007 claims brought under the state's powerful Martin Act.

New York Attorney General Eric Schneiderman had alleged that Charles Schwab had misled investors about the fact that it helped prop up the securities by providing liquidity, a fact they didn't have to face until the auction-rate securities market froze up in 2007 and 2008 when that support...
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