just received more bad court news on the YieldPlus
's Karen Gullo reports
that yesterday in San Francisco U.S. District Judge William Alsup denied the brokerage giant's latest request to dismiss the lawsuit, In Re Charles Schwab Corp. Securities Litigation
, over the losses suffered by YieldPlus investors. Watch for the trial to start in May.
"While we are disappointed that he declined Schwab's request to dismiss the case prior to going to trial, it is important to note that he did not make a final determination of any issues in the case," Schwab spokesman David Weiskopf told Bloomberg.
The decision comes just nine days after Alsup himself ruled against Schwab on a different count in the same suit, declaring that Schwab broke the law when it didn't receive shareholder approval before investing more than 25 percent of YieldPlus' assets into mortgage-backed securities.
After peaking at $13.5 billion in 2007, YIeldPlus suffered both outflows and market losses that brought it down to just $184 million in assets as of February 28, 2010.
Neil Anderson, Managing Editor
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