Hagens Berman Sobol Shapiro LLP filed a class-action lawsuit on Sept. 3, 2010 against Charles Schwab & Co. on behalf of investors who owned shares in the Schwab Total Bond Market Fund (Nasdaq: SWLBX) as of Nov. 30, 2006.
The suit accuses Charles Schwab & Co. of causing the fund to deviate from its fundamental business objective to track the Lehman Brothers U.S. Aggregate Bond Index.
The plaintiffs contend that the fund deviated from its stated investment objective by investing a material percentage of its portfolio in high-risk, non-agency collateralized mortgage obligations, or CMOs, which were not part of the Lehman Bros. U.S. Aggregate Bond Index, according to the complaint.
Schwab’s deviation from the fund’s primary investment objective led to tens of millions of dollars in shareholder losses due to a long-term decline in the value of non-agency mortgage-backed securities, the lawsuit contends.
If you purchased shares in the Schwab Total Bond Market Fund as of Nov. 30, 2006, you may be eligible to be part of the class. Fill out the contact form on this page to find out more information.