Stull, Stull & Brody Announces Class Action Lawsuit Against Charles Schwab on Behalf of Purchasers of Schwab YieldPlus Funds

NEW YORK, NY -- (MARKET WIRE) -- 04/04/08 -- Attorney Advertising. Notice is hereby given that a class action has been commenced in United States District Court for the Northern District of California against Charles Schwab Corporation ("Charles Schwab" or the "Company") (NASDAQ: SCHW) on behalf of all persons who purchased Schwab YieldPlus Funds Investor Shares (NASDAQ: SWYPX) or Schwab YieldPlus Funds Select Shares (NASDAQ: SWYSX) from March 17, 2005 through March 18, 2008, inclusive (the "Class Period").

The Complaint charges that Charles Schwab and certain of the funds' underwriters, investment advisers, officers and directors violated federal securities laws by issuing materially false statements regarding the diversification of these funds and the extent of investments assigned to sub-prime mortgage backed and related securities. Specifically, the Complaint alleges the funds' registration statements and prospectuses contained untrue statements of material facts, and omitted important information regarding the funds' investments.

On November 15, 2004, the Corporation began offering the Schwab YieldPlus investment funds through a registration statement and prospectus. The YieldPlus funds are advertised by the defendants as 'a safe alternative to money market funds that preserve principal while being designed with your income needs in mind.' Throughout the Class Period the Company claimed the funds were investments in a large, well-diversified portfolio, that a seasoned team of taxable bond portfolio managers actively managed the funds, and that investment in Schwab YieldPlus would return higher yields on cash with only marginally higher risk. Unbeknownst to investors, more than 50 percent of the funds' assets were invested in the mortgage industry. Since July of 2007, the share price for the funds has fallen 18 percent.

If you are a member of the class, you may, no later than May 16, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact: Tzivia Brody, Esq. Stull, Stull & Brody SSBNY@aol.com 1-800-337-4983 fax 1-212-490-2022

2008-04-04 16:40:41 0328681 MARKETWIRE