Schwab to Settle with Burned Bond Investors

Charles Schwab said Tuesday it will pay $200 million to settle a portion of a lawsuit filed over losses suffered by its YieldPlus bond fund, which plaintiffs alleged had been marketed as a safe alternative to cash. More Money had written about this case earlier this month.

In a statement, the company said that settling “allows the company to avoid the distraction and uncertainty of a trial, and the further possibility of a protracted appeals process.”

Follow MONEY on Twitter at

Your browser, Internet Explorer 8 or below, is out of date. It has known security flaws and may not display all features of this and other websites.

Learn how to update your browser

Get every new post delivered to your Inbox.

Join 46,079 other followers