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Friday, April 25, 2008|
Schwab Makes Behind the Scenes Offers to YieldPlus Investors
Schwab has been privately offering settlements to investors who lost money in its YieldPlus fund, according to Andrew Stoltmann of Chicago-based law firm Stoltmann Law Offices.
Stoltmann told MFWire that Schwab's Client Advocacy Group has offered settlements of around 10 cents on the dollar to investors who lost money in the fund. He said he has knowledge of 10 investors that were offered the settlement, though none have accepted.
"This is really a low ball offer," Stoltmann said.
Currently, Stoltmann has three claims in arbitration with FINRA regarding clients who lost money in the fund. He said he expects to file 20 to 25 more in the coming weeks.
A spokesman for Schwab was not immediately available to comment.
Printed from: MFWire.com/story.asp?s=18076
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