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SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors The Charles Schwab Corporation - SCHW
News provided byPomerantz LLP
Jul 21, 2022, 8:18 PM ET
NEW YORK, July 21, 2022 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Charles Schwab Corporation ("Charles Schwab" or the "Company") (NYSE: SCHW). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 7980.
The investigation concerns whether Charles Schwab Therapeutics and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On July 2, 2021, Charles Schwab disclosed in a filing with the U.S. Securities and Exchange Commission ("SEC") that the Company "has been responding to an investigation by the [SEC] arising from a compliance examination" and that "[t]he investigation largely concerns historic disclosures related to the Schwab Intelligent Portfolios® (SIP) digital advisory solution. "Accordingly, Charles Schwab disclosed that "[g]iven the investigation's status, Schwab's second quarter 2021 financial results will include a liability and related non-deductible charge of $200 million."
On this news, Charles Schwab's stock price fell $2.03 per share, or 2.79%, to close at $70.77 per share on July 6, 2021, the next trading day.
Then, on June 13, 2022, the SEC announced that it "charged three Charles Schwab investment adviser subsidiaries" who "agreed to pay $187 million to harmed clients to settle the charges. "The SEC charged Charles Schwab with misleading investors that used its robo-adviser product, Schwab Intelligent Portfolios. Instead of the touted "disciplined portfolio construction methodology" that sought "optimal return[s]", Charles Schwab's "own data showed that under most market conditions, the cash in the portfolios would cause clients to make less money even while taking on the same amount of risk."
On this news, Charles Schwab's stock price fell $1.98 per share, or 3.18%, to close at $60.24 per share on June 13, 2022.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP