FINRA Shakes Schwab's Suit Over Class Waivers

Law360, New York (May 11, 2012, 11:00 PM EDT) -- A California federal judge on Friday tossed Charles Schwab & Co. Inc.'s suit against the Financial Industry Regulatory Authority over alterations made to customer account agreements to prevent them from joining class actions against the company.

U.S. District Judge Elizabeth D. Laporte granted FINRA's motion to dismiss the suit, agreeing with the agency that Schwab needed to exhaust its administrative remedies before filing suit.

“Plaintiff's claims, far from being merely peripheral to the disciplinary action, challenge the interpretation of the FINRA rule whose alleged violation is...
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