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SCHW-PD.US
id: 1018, Created by , Scout

The Charles Schwab Corporation (SCHW) Charged by SEC with Misleading Investors Case

  • In July 2021, Charles Schwab (SCHW) disclosed ongoing investigation by SEC with $200M charge in Q2’ 21. Then in June 2022, SEC charged Charles Schwab with misleading investors that used its suboptimal robo-advisor product.
  • On it, in June 2022 $SCHW fell 2.45%, losing $823M+ of shareholder value.
  • Investors may have grounds to suspect that Charles Schwab failed to uphold professional standards in serving its clients, which led to their losses.
On July 2, 2021, Charles Schwab disclosed an investigation by the SEC focused on 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. Then, on June 13, 2022, the SEC announced that it had charged Charles Schwab with misleading investors that used its robo-advisor product, Schwab Intelligent Portfolios. Instead of receiving optimal returns, Charles Schwab’s clients stood to make less money even while taking on the same amount of risk.

On this news, on June 13, 2022 $SCHW fell 2.45% and lost over $823 million of its market capitalization, seriously damaging shareholders.

Considering all the information, investors might have grounds to suspect that Charles Schwab failed to disclose not meeting SEC requirements in its client service, which led to their losses.
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
13 June 2022
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The Charles Schwab Corporation

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, cust...

    Ticker
    SCHW-PD.US
    CIK
    316709
    Sector
    Financial Services
    Industry
    Capital Markets
    Country
    USA
    Address
    3000 Schwab Way, Westlake, TX, United States, 76262