Charles Schwab Corp. has agreed to pay $200 million to settle claims that it misled investors on the amount of mortgage-backed securities held by its Schwab YieldPlus Fund. Schwab agreed to settle the claims filed in 2008 by paying the $200 million to Plaintiffs. The lawsuit alleged that Schwab incorrectly described the fund, once the world’s largest short-term bond fund, as “safe.” A trial was scheduled for this month. U.S. District Judge William H. Alsup had denied Schwab’s bid to dismiss the case in early April. Steve Berman, a lawyer with Seattle-based Hagens Berman Sobol Shapiro, represented the investors and did a very good job.
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