Court Asks Schwab Fund Plaintiff To Revise Complaint

Law360, New York (February 20, 2009, 12:00 AM EST) -- In a class action launched by an investment advisory firm against Charles Schwab & Co. Inc. over the investment strategy of one of its bond funds, a judge has granted Schwab’s motion to dismiss for lack of standing, but has granted Northstar Financial Advisors Inc. leave to amend its complaint.

Judge Susan Illston of the U.S. District Court for the Northern District of California issued a ruling Thursday, saying that since Northstar never owned shares of the bond fund itself, but only bought shares for clients,...
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