Schwab Wants Out Of $235M YieldPlus Fraud Deal

Law360, New York (November 9, 2010, 1:22 PM EST) -- The Charles Schwab Corp. has told a court it wants out of a previously agreed-on $235 million payout to end a class action claiming that it fraudulently mismanaged its YieldPlus ultra-short bond fund.

Schwab's notice of withdrawal, filed Monday in the U.S. District Court for the Northern District of California, came after a ruling that the deal, which created three classes under California law, did not extinguish the rights of non-California residents to bring claims of unfair business practices.

Assertions by the plaintiffs’ attorneys that they...
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