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



I am grateful to have found an outstanding law firm that specializes in securities matters. My lawyers were extremely knowledgeable, diligent, and are skilled litigators. No stone was left upturned. As a result of their experience and tenacity, the arbitration proceeding was dismissed in my favor.

Michael E.


June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015. 

June 23, 2022
Eccleston Law LLC Investigates Recovery Options for NRIA Investors

Headquartered in Secaucus, NJ, National Realty Investment Advisors (NRIA) recently declared bankruptcy amid investor redemption requests, federal and state investigations, and unsustainable debt.

June 22, 2022
SEC Charges Three Additional Advisors for Recommending Horizon Ponzi Scheme to Investors

The Securities and Exchange Commission (SEC) has filed suit against Michael Mooney, Britt Wright, and Penny Flippen pertaining to their engagement with a Ponzi scheme, which raised at least $110 million from nearly 400 investors.