Charles Schwab Hit With Class Action Over Robo-Advisers
By Sarah Jarvis (September 13, 2021, 5:59 PM EDT) -- Charles Schwab Investment Advisory Inc. has been hit with a proposed class action in a California federal court alleging that the company's robo-adviser investment program has cost investors more than half a billion dollars in losses by keeping accounts over-concentrated in cash.
Plaintiffs Lauren Marie Barbiero, Kimberly Jo Lopez and William Kenneth Lopez alleged in their Friday complaint that their "Intelligent Portfolios" accounts had excessive and unwarranted cash positions in order to rake in more money for CSIA and its parent company, the Charles Schwab Corporation, at the investors' expense.
"This caused plaintiffs and the proposed class foreseeably to miss out...
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