Securities & Investment Fraud

Charles Schwab Cases – Residential Mortgage-Backed Securities

Issue: Alleged violations of California Securities Laws

The Charles Schwab Corp. v. BNP Paribas Sec. Corp., No. CGC-10-501610 (Cal. Super. Ct.); The Charles Schwab Corp. v. J.P. Morgan Sec., Inc., No. CGC-10-503206 (Cal. Super. Ct.); The Charles Schwab Corp. v. J.P. Morgan Sec., Inc., No. CGC-10-503207 (Cal. Super. Ct.); and The Charles Schwab Corp. v. Banc of America Sec. LLC, No. CGC-10-501151 (Cal. Super. Ct.).

Lieff Cabraser, along with co-counsel, represents Charles Schwab in four separate individual securities actions against certain issuers and sellers of mortgage-backed securities (“MBS”) for materially misrepresenting the quality of the loans underlying the securities in violation of California state law. Charles Schwab Bank, N.A., a subsidiary of Charles Schwab, suffered significant damages by purchasing the securities in reliance on defendants’ misstatements.

The court largely overruled defendants’ demurrers in January 2012. Settlements have been reached with certain defendants for confidential amounts. Trials against remaining defendants Morgan Stanley & Co. Inc. and UBS Securities, LLC are scheduled for July 2016 and February 2017, respectively. Motions for summary judgment by defendant Goldman, Sachs & Co. are currently being briefed.