Supreme Court Rejects Charles Schwab Appeal

Posted on November 5th, 2015 at 5:04 PM
Supreme Court Rejects Charles Schwab Appeal

From the Desk of Jim Eccleston at Eccleston Law LLC:

The United States Supreme Court recently upheld a decision to allow Northstar Financial Advisors Inc. to sue Charles Schwab on behalf of its investor-clients. In a ruling by the 9th U.S. Circuit Court of Appeals, Northstar was given the right to sue Charles Schwab for breach of contract. The appellate court decision explained that the fund’s fundamental policies were sufficient to form a binding contract.

Schwab allegedly deviated from the explicit objectives of a mutual fund sold to investors. The objective of the fund was to track the Lehman Brothers U.S. Aggregate Bond Index and thereby avoid big industry bets. Schwab portfolio managers allegedly invested over 25% of assets in mortgage securities and collateralized mortgage obligations. During the relevant period, the fund lost 4.80% while the index rose 7.85%.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law,

Return to Archive

TESTIMONIALS

Previous
Next

Hiring Eccleston Law has been one of the best career decisions I have made and this "investment" to maintain my sterling regulatory record has been returned many times over.  If you are in a situation where you've been unfairly accused, don't hesitate to talk with Eccleston Law. They are the best.

Thomas C.

LATEST NEWS AND ARTICLES

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.

October 22, 2021
TIAA Sues Former Advisors For Allegedly Soliciting Clients

Teachers Insurance and Annuity Association of America (TIAA) filed suit against three of its former Connecticut advisors for allegedly soliciting TIAA clients to join them at their new firm.