Schwab Unlawfully Changed Mutual Fund Terms: Judge

Law360, New York (April 1, 2010, 2:40 PM EDT) -- The federal judge overseeing an investor class action accusing Charles Schwab Corp. of mismanaging its YieldPlus fund has concluded that the investment company violated a federal law aimed at regulating mutual funds by abruptly changing the terms of the policy without a shareholder vote.

Judge William Alsup of the U.S. District Court for the Northern District of California on Tuesday granted the plaintiffs' motion for summary judgment on their claims related to Section 13 of the Investment Company Act of 1940, a law that prohibits fund...
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