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Charles Schwab Intelligent Portfolio Class Action Lawsuit 2021 - Purposedly Mishandling Investors' Money

Consumer Class Actions

Charles Schwab Intelligent Portfolio Class Action Lawsuit 2021 – Purposedly Mishandling Investors’ Money?

Charles Schwab Is Being Sued For Allegations That They Hurt Their Investors’ Best Interests Concerning Their Intelligent Portfolio Accounts With The Company

A collective of Charles Schwab investors is suing the company after it allegedly disregarded their and other company investors’ best interests to favor their own gains – allegedly resulting in millions of dollars of losses for the dissatisfied investors. 

Three Investors Take Charles Schwab To Court 

Click to access Lauren-Marie-Barbiero-et-al.-v.-Charles-Schwab-Investment-Advisory-Inc..pdf

Filed by individual investors William Kenneth Lopez, Lauren Marie Barbiero, and Kimberly Jo Lopez, the Charles Schwab Intelligent Portfolio Class Action Lawsuit is seeking to take Charles Schwab to court for alleged misdeeds that have harmed and injured their company investors’ best financial interests. 

According to the three, Charles Schwab reportedly misallocated their investments into means that would benefit the company more instead of the company investors. Further, the class action contends that Charles Schwab’s Intelligent Portfolio management service put investors’ money to cash allocations instead of investing it in more lucrative opportunities that would benefit the investing party. 

It is believed that this move ended up benefitting Charles Schwab because putting money into cash allocation investments earned them interests that amounted to millions of dollars. The owners of the investment money ended up not gaining more in the process due to the company’s purported ill motivations in managing their clients’ investment portfolios. 

The three argued that a large part of their investment portfolios with Charles Swab ended up being allocated to cash allocations instead of far more monetary rewarding investments in the stock market. 

More Details About The Class Action Case 

Charles Schwab’s defense argues that the cash allocations option is an indispensable part of its Intelligent Portfolio management system. According to the company’s disclosure statement to the authorities in the Securities and Exchange Commission or SEC, the company can allocate up to 30% of an investor’s money in their portfolio to cash allocations. 

The investment manager admitted that this policy may potentially foster conflict of interest and can possibly affect the overall gains and performance of a given portfolio and the investor’s risk profile. 

The Charles Schwab Intelligent Portfolio Class Action Lawsuit wants Charles Schwab to answer to different charges in court ranging from breach of fiduciary duty, breach of contract to negligent misrepresentation. 

The three complainants are looking to form and represent a Class group consisting of all of Charles Schwab’s company investors who owned or currently own an investment portfolio managed by the company under its Intelligent Portfolio management services. 

About The Company

Charles Schwab, officially known as Charles Schwab Investment Advisory Inc., is a company that specializes in providing its clients with investment advisory planning and management services. Located in San Francisco, California, the company exclusively caters to clients in the United States. 

Editor’s Note on Charles Schwab Intelligent Portfolio Class Action Lawsuit: 

This class action report is aimed to provide you the latest information about the litigation raised against Charles Schwab by its investors with different allegations, including breach of contract and the like. Similarly, we suggest you to read about the Boston Beer Company SEC Lawsuit.

Case Name(s) & No.: Lauren Marie Barbiero, et al. v. Charles Schwab Investment Advisory Inc.; Case No.: 3:21-cv-07034-LB

Jurisdiction: United States (U.S.) District Court for the Northern District of California 

Products/Services Involved: Charles Schwab’s Intelligent Portfolio 

Allegation(s): Charles Schwab’s investors left out on possibly more profitable investment opportunities after the company ended up allocating a sizable portion of their portfolio in lesser-earning investments. 

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