CASES
Schwab Total Bond Market Fund (2010)
Summary of Case:
A securities class action has been filed against Schwab Total Bond Market Fund (2010) (SWLBX) (the "Fund") on behalf of all securities purchasers who owned shares of the Fund as of May 31, 2007. The case has been filed in the United States District Court for the Northern District of California.
The complaint alleges 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. The complaint also alleges that the Fund deviated from its stated fundamental investment objective by investing more than 25 percent of its total assets in non-agency mortgage-backed securities and CMOs. 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.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.