Ninth Circuit Revives Proposed Class Action Againt Charles Schwab
Earlier this week, the Ninth Circuit Court of Appeals breathed new life into class action brought by Northstar Financial Advisors Inc. alleging Charles Schwab cost its shareholders millions by taking riskier positions in collateralized mortgage obligations than the firm’s own investment guidelines permitted. The appeals court reversed in part and vacated in part the lower court’s decision to dismiss the suit. In so doing, the court found the Schwab fund prospectus is a contract and that the financial adviser therefore has standing to sue on behalf of investors.
This is just the latest in a long line of investor-related suits involving shareholders of large banks and brokerage that took huge bets on collateralized mortgage obligations (CMO) leading up to the mortgage market collapse of 2008.
If you have lost money as a result of a mortgage related investment, please contact the experience securities fraud attorneys at Colling Gilbert Wright & Carter for a free case evaluation.