{"id":5518,"date":"2013-08-29T00:00:00","date_gmt":"2013-08-29T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/08\/ny_ags_ars_lawsuit_against_cha"},"modified":"2022-05-05T08:47:04","modified_gmt":"2022-05-05T13:47:04","slug":"ny-ags-ars-lawsuit-against-cha","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/","title":{"rendered":"NY AG\u2019s ARS Lawsuit Against Charles Schwab &#038; Co. is Revived by Appeals Court"},"content":{"rendered":"\n<p>A New York Appellate Division\u2019s panel has unanimously agreed to revive the state attorney general\u2019s auction-rate securities lawsuit against Charles Schwab and Co.  (SCHW). The 2009 securities case accuses the financial firm of committing fraud in its sale and marketing of the financial instruments. The decision reverses a state judge\u2019s ruling to throw out the complaint.<\/p>\n<p>According to the NY ARS lawsuit, the broker-dealer\u2019s brokers made false representations that the securities were safe and liquid. In a 4-0 decision, the appeals panel said that the state had given enough evidence to merit a trial on two claims submitted per its Martin Act, a 1921 law that gives the attorney general of New York the ability to prosecute fraud without proof of intent. Under the law fraud is defined as acts that involve misleading or fooling the public.<\/p>\n<p>Per the panel\u2019s ruling, the claims are revived only as it pertains Schwab\u2019s alleged misconduct before 9\/5\/07, which is when the first ARS sold by Schwab failed. The state wants the company to repurchase securities from customers and pay civil penalties and restitution.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/\"  title=\"Continue Reading NY AG\u2019s ARS Lawsuit Against Charles Schwab &#038; Co. is Revived by Appeals Court\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A New York Appellate Division\u2019s panel has unanimously agreed to revive the state attorney general\u2019s auction-rate securities lawsuit against Charles Schwab and Co. (SCHW). The 2009 securities case accuses the financial firm of committing fraud in its sale and marketing of the financial instruments. The decision reverses a state judge\u2019s ruling to throw out the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3865,3752],"tags":[],"class_list":["post-5518","post","type-post","status-publish","format-standard","hentry","category-auction-rate-securities","category-financial-firms"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>NY AG\u2019s ARS Lawsuit Against Charles Schwab &amp; Co. is Revived by Appeals Court &#8212; Investor Lawyers Blog &#8212; August 29, 2013<\/title>\n<meta name=\"description\" content=\"A New York Appellate Division\u2019s panel has unanimously agreed to revive the state attorney general\u2019s auction-rate securities lawsuit against Charles Schwab &#8212; August 29, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"NY AG\u2019s ARS Lawsuit Against Charles Schwab &amp; Co. is Revived by Appeals Court &#8212; Investor Lawyers Blog &#8212; August 29, 2013\" \/>\n<meta name=\"twitter:description\" content=\"A New York Appellate Division\u2019s panel has unanimously agreed to revive the state attorney general\u2019s auction-rate securities lawsuit against Charles Schwab &#8212; August 29, 2013\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"NY AG\u2019s ARS Lawsuit Against Charles Schwab & Co. is Revived by Appeals Court &#8212; Investor Lawyers Blog &#8212; August 29, 2013","description":"A New York Appellate Division\u2019s panel has unanimously agreed to revive the state attorney general\u2019s auction-rate securities lawsuit against Charles Schwab &#8212; August 29, 2013","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/","twitter_card":"summary_large_image","twitter_title":"NY AG\u2019s ARS Lawsuit Against Charles Schwab & Co. is Revived by Appeals Court &#8212; Investor Lawyers Blog &#8212; August 29, 2013","twitter_description":"A New York Appellate Division\u2019s panel has unanimously agreed to revive the state attorney general\u2019s auction-rate securities lawsuit against Charles Schwab &#8212; August 29, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"NY AG\u2019s ARS Lawsuit Against Charles Schwab &#038; Co. is Revived by Appeals Court","datePublished":"2013-08-29T05:00:00+00:00","dateModified":"2022-05-05T13:47:04+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/"},"wordCount":432,"articleSection":["Auction-Rate Securities","Financial Firms"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/","url":"https:\/\/www.investorlawyers.com\/blog\/ny-ags-ars-lawsuit-against-cha\/","name":"NY AG\u2019s ARS Lawsuit Against Charles Schwab & Co. is Revived by Appeals Court &#8212; 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