Schwab Faces Another Action Over Bond Fund

Law360, New York (September 7, 2010, 5:55 PM EDT) -- Charles Schwab & Co. Inc. has been hit with another proposed class action alleging it deviated from the investment strategy on one of its bond funds by investing heavily in mortgage-backed securities.

Plaintiff Jerry Smit filed the suit Friday in the U.S. District Court for the Northern District of California on behalf of investors who owned shares in the Schwab Total Bond Market Fund as of Nov. 30, 2006.

According to the complaint, Schwab illegally caused the fund to deviate from its fundamental business objective of...
To view the full article, register now.