The Charles Schwab Corporation (NYSE: SCHW)

This investigation is for anyone who acquired securities in The Charles Schwab Corporation (NYSE: SCHW) prior to June 13, 2022.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by failing to tell investors that the Company’s robo-advisor product, Schwab Intelligent Portfolios, was more risky and less profitable than the Company had previously led investors to believe.

On July 2, 2021, Charles Schwab disclosed that the Company had been “responding to an investigation” by the 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, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on June 13, 2022, the SEC announced that it had charged Charles Swab 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, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in The Charles Schwab Corporation (NYSE: SCHW) prior to June 13, 2022 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.