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...
To view the full article, register now.




Case Information

Case Title

Smit v. Charles Schwab & Co. Inc. et al

Case Number



California Northern

Nature of Suit

Stockholders Suits


Lucy H. Koh

Date Filed

September 3, 2010

Law Firms


UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.