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Friday, November 19, 2010|
Schwab's YieldPlus Settlement is On Again
Fundsters following the Schwab YieldPlus Fund [see profile] drama might be interested to hear that the abandoned $235 million settlement proposals are back on the table, with revisions.
YieldPlus plunged in 2007 and 2008, thanks largely to heavy investments in mortgage-related securities, and shareholders sued over that investing shift. Earlier this month Schwab abandoned the settlement proposals (one for claims under federal law, another for those under California law) over concern that the plaintiffs' attorneys still wanted to pursue separate suits for the 97,000 YieldPlus shareholders outside California (see The MFWire, 11/9/2010). Now Bloomberg, Reuters and the Wall Street Journal all report that yesterday the plaintiffs' attorneys and Schwab have agreed to a new settlement that allows shareholders outside California to sue separately only if they opt out of the settlement.
The new deal awaits approval by U.S. District Judge William Alsup in San Francisco.
Printed from: MFWire.com/story.asp?s=35180
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