Charles Schwab Shareholders' MBS Action Tossed

Law360, New York (April 20, 2011, 3:22 PM EDT) -- A California federal judge on Tuesday dismissed a shareholder class action alleging Charles Schwab & Co. Inc. deviated from the strategy of a bond fund by investing heavily in mortgage-backed securities.

U.S. District Judge Lucy Koh had given the plaintiffs until March 29 to file a second amended complaint when she approved a partial motion to dismiss the case on March 8, but as no new complaint was filed, Judge Koh ordered the case dismissed with prejudice.

According to the complaint, Charles Schwab illegally caused the...
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