What You Need to Know Three investors allege Schwab violated its fiduciary duties by ove...

Schwab Faces Class-Action Suit Over Cash Sweeps – ThinkAdvisor

What You Need to Know Three investors allege Schwab violated its fiduciary duties by overconcentrating Intelligent Portfolios accounts in cash. That allegedly caused the plaintiffs and other Schwab clients to lose hundreds of millions of dollars. Schwab disclosed in July it took a $200 million regulatory charge related to a SEC probe of the robo-advisor platform. Charles Schwab was hit with a class-action complaint by three investors who alleged the firm violated its fiduciary duties by “wrongfully overconcentrating” clients’ Schwab Intelligent Portfolios robo-advisor accounts in cash positions that ended up costing them hundreds of millions of dollars. The complaint, filed …

 

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