Hagens Berman Sobol Shapiro Files Proposed Class-Action Lawsuit On Behalf of Investors...

Hagens Berman Sobol Shapiro Files Proposed Class-Action Lawsuit On Behalf of
Investors in the Schwab YieldPlus Funds

SEATTLE, March 18 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP
("Hagens Berman") (http://www.hbsslaw.com/schw) today announced it filed a
proposed class-action lawsuit in the United States District Court for the
Northern District of California on behalf of those who purchased Schwab
YieldPlus Funds Investor Shares (Nasdaq: SWYSX) or Schwab YieldPlus Funds
Select Shares (Nasdaq: SWYPX) from Charles Schwab Corporation ("Charles
Schwab" or the "Company") (Nasdaq: SCHW) from March 17, 2005 to March 18, 2008
(the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later
than May 16, 2008. If you wish to consider joining this action as lead
plaintiff, discuss this action or have any questions concerning this notice or
your rights or interests, please contact plaintiff's counsel, Reed Kathrein of
Hagens Berman at 510/725-3000 or via e-mail info@hbsslaw.com. You can view a
copy of the complaint as filed or join this class action online at
www.hbsslaw.com/schw. Any member of the purported class may move the
Court to serve as lead plaintiff through counsel of their choice, or may
choose to do nothing and remain an absent class member. Although your ability
to share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important decisions
which could affect the overall recovery for class members, including decisions
concerning settlement. The securities laws require the Court to consider the
class member(s) with the largest financial interest as presumptively the most
adequate lead plaintiff(s).
The complaint claims Charles Schwab Corporation headquartered in San
Francisco, CA, the funds' underwriter, investment advisers and officers and
directors issued untrue statements regarding the lack of diversification of
these funds and the extent of investments assigned to sub-prime mortgage
backed and related securities. The complaint alleges the funds registration
statements and prospectuses contained untrue statements of material facts, and
omitted important information regarding the funds' investments, ultimately
misleading investors.
On Nov. 15, 2004, the Company began offering the Schwab YieldPlus
investment funds through a registration statement and prospectus. The
YieldPlus funds are advertised by the defendants as 'a safe alternative to
money market funds that preserve principal while being designed with your
income needs in mind'. Throughout the Class Period the Company claimed the
funds were investments in a large, well-diversified portfolio, a seasoned team
of taxable bond portfolio managers actively managed the funds, and that
investment in Schwab YieldPlus would return higher yields on cash with only
marginally higher risk, a smart alternative. Since July of 2007, the share
price for the funds began lowering, for a total loss of 18 percent. Today the
funds stand at an all-time low of $7.96, down more than 11 percent from
Jan. 1, 2008.
The lawsuit claims the funds are not well diversified, instead
concentrated in a single risky industry with more than 50 percent of the funds
assets invested in the mortgage industry. The lawsuit seeks remedies under the
1933 Act on behalf of all fund purchasers during the Class Period.
Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San
Francisco, Los Angeles, Boston, Chicago and Phoenix, is active in major
litigations pending in federal and state courts throughout the United States
and has taken a leading role in many important actions on behalf of defrauded
investors, consumers, and companies, as well as victims of human rights
violations. The Hagens Berman Web site (http://www.hbsslaw.com) has more
information about the firm.
Contact: Hagens Berman Sobol Shapiro LLP
Reed R. Kathrein
510/725-3000
info@hbsslaw.com
www.hbsslaw.com

SOURCE Hagens Berman Sobol Shapiro LLP

Reed R. Kathrein of Hagens Berman Sobol Shapiro LLP, +1-510-725-3000,
info@hbsslaw.com