Schwab Fund's Changes Breached Contract, 9th Circ. Hears

Law360, San Francisco (May 17, 2013, 5:39 PM EDT) -- Northstar Financial Advisors Inc. urged the Ninth Circuit on Friday to revive its shareholder suit against Schwab Investments, arguing that a lower court was wrong to find that a Schwab fund prospectus isn't a contract and that financial advisers do not have standing to sue on behalf of investors.

U.S. District Judge Lucy Koh erred when she tossed Northstar's suit, which accused Schwab of breach of contract for wildly altering its investment strategy on an index fund from what it described in the fund's prospectus, its attorney...
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