2022-07-26 | NYSE: SCHW | Press release

The Law Firms of Frank R. Cruz announces an investigation into The Charles Schwab Corporation (“Charles Schwab” or the “” Company) (NYSE: SCHW) on behalf of investors regarding possible violations by the Company of federal securities laws.

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On July 2, 2021, Charles Schwab disclosed that the company had “responded to an investigation” by the U.S. Securities and Exchange Commission (“SEC”) “arising from a compliance review” and that the investigation “concerns largely historical 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, hurting investors.

Then, on June 13, 2022, the SEC announced that it had charged Charles Schwab with misleading investors who used his 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, liquidity in wallets would cause clients to earn less money even when taking on the same level 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, further energizing investors.

If you have purchased Charles Schwab securities, have information or want to know more about these claims, or have any questions regarding this announcement or your rights or interests in these matters, please contact Frank R. Cruz, Firms Lawyers of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067 at 310-914-5007, by email at info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.

This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220726006183/en/