The Law Offices of Frank R. Cruz announces an investigation of The Charles Schwab Corporation (“Charles Schwab” or the “Company”) (NYSE: SCHW) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On July 2, 2021, Charles Schwab disclosed that the Company had been “responding to an investigation” by the U.S. Securities and Exchange Commission (“SEC”) “arising from a compliance examination” and that the investigation “largely concerns historic disclosures related to the Schwab Intelligent Portfolios digital advisory solution.” The company warned that its second quarter 2021 financial results would include a liability and related non-deductible charge of $200 million.
On this news, Charles Schwab’s stock fell $2.03, or 2.8%, to close at $70.77 per share on July 6, 2021, thereby injuring investors.
Then, on June 13, 2022, the SEC announced that it had charged Charles Schwab with misleading investors that used its robo-advisor product, Schwab Intelligent Portfolios. Instead of the “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 fell $1.98, or 3.2%, to close at $60.24 per share on June 13, 2022, thereby inuring investors further.
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If you purchased Charles Schwab securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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