U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Charles Schwab Investment Management, et al.

On January 11, 2011, the SEC filed a settled civil complaint against Charles Schwab Investment Management (CSIM), Charles Schwab & Co., Inc. (CS&Co.) and Schwab Investments.  The SEC charged CSIM and CS&Co. with making misleading statements regarding the Schwab YieldPlus Fund and failing to establish, maintain, and enforce policies and procedures to prevent the misuse of material, nonpublic information.  The SEC also charged CSIM and Schwab Investments with deviating from the concentration policy of the YieldPlus Fund and the Schwab Total Bond Market Fund without obtaining the required shareholder approval.  As part of the settlement, CSIM and CS&Co. agreed to pay $118 million in penalties, disgorgement and prejudgment interest, of which approximately $110 million is available for distribution in this matter to injured investors.

For further information about the SECís action, please read Press Release 2011-7 (Jan. 11, 2011) and Litigation Release No. 21806 (Jan. 11, 2011).

Shareholders can obtain information about the distribution process by calling the Distribution Agent, Gilardi & Co, LLC, at (877) 348-5519, writing the Schwab Fair Fund, P.O. Box 808003, Petaluma, CA 94975-8003, emailing classact@Gilardi.com or visiting www.schwabfairfund.com.

 

http://www.sec.gov/divisions/enforce/claims/schwabinvestmgt.htm


Modified: 5/8/2012