NEW YORK, Oct. 31 /PRNewswire/ -- The Securities Law Firm of Klayman & Toskes, P.A. ("K&T"), www.nasd-law.com, announced today that a class action lawsuit, Case No. CV-10-3971, has been filed against Charles Schwab (NYSE: SCHW) on behalf of investors who purchased Schwab's Total Bond Market Fund (Nasdaq: SWLBX). Potential class members should consider whether they should participate in the class action or file an individual securities arbitration claim.
According to the suit, Charles Schwab caused the Fund to deviate from its fundamental investment objective to track the Lehman Brothers U.S. Aggregate Bond Index ("the Index"). Specifically, "the Fund deviated from its stated investment objective by investing a material percentage of its portfolio in high risk non-agency collateralized mortgage obligations ("CMOs"). The non-agency CMOs were not a part of the Index and were substantially more risky than the U.S. agency securities and other instruments that comprised the Index." Moreover, it is alleged that "the Fund ... deviated from its stated fundamental investment objective by investing more than 25% of its total assets in non-agency mortgage backed securities and CMOs. The Fund's investment objectives prohibited any concentration of investments greater than 25% in any industry (other than if necessary to track the Index)."
K&T reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant losses in Schwab's Total Bond Market Fund, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, K&T conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
Investors who purchased the Total Bond Market Fund and sustained significant losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or have losses of $100,000 or more in the Total Bond Market Fund, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.
SOURCE Klayman & Toskes, P.A.