Answers
| 1. |
How Has the Proposed Settlement Changed?
The proposed settlement has been amended to revise the scope of the legal release that you will be providing by choosing to participate in the settlement. If you do not elect to exclude yourself from the settlement, you will be releasing all of your claims against Schwab in connection with YieldPlus Fund shares held on September 1, 2006 and shares acquired during the class period. A release means you cannot bring another lawsuit involving these YieldPlus Fund shares. The language of the release is attached to this Notice.
The release described in the prior notice said that "The 17200 claim alleged in the Class Action, and only that 17200 claim, is excluded from the Released Claims." The settlement has been amended to remove this sentence and clarify the scope of the release. If you do not elect to exclude yourself from the settlement, you will be deemed to have released the 17200 claim as well as all other claims described in the language of the release attached to this Notice.
The "17200 claim" refers to Section 17200 of the California Business & Professions Code. The Court had previously declined to allow the 17200 claim to proceed as a class claim for YieldPlus Fund share holders residing outside of California. The Court only allowed the 17200 claim to proceed on behalf of the California Class. In light of this ruling, Class Counsel believe that the benefits of the proposed settlement outweigh the benefits of preserving this uncertain claim.
The California Class received an additional $35 million for release of their 17200 claims. For those California Class members who were also members of the federal securities class, this was in addition to their recovery for their federal securities claims.
The proposed settlement has also been amended to provide you with an opportunity to exclude yourself from participating in the settlement and forego your estimated payment, as more particularly described below in response to question 3.
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| 2. |
Will the amendment change the amount of my settlement payment?
The parties do not believe that this amendment to the settlement will change your settlement payment if you choose not to exclude yourself from the settlement.
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| 3. |
How Do I Request to Be Excluded From the Class?
In order to properly exclude yourself, your exclusion must be postmarked no later than January 14, 2011 and received no later than January 21, 2011. If you request exclusion, you will NOT receive any money from the proposed settlement.
In order to be valid, your request for exclusion must (i) set forth the name and address of the person or entity requesting exclusion, (ii) specify the accounts to which the exclusion request applies, (iii) specify the number and type of Schwab YieldPlus Fund shares held on September 1, 2006 and any additional Schwab YieldPlus Fund shares acquired between May 31, 2006, and March 17, 2008, through purchase or a dividend reinvestment, (iv) specify all cash dividends received on such shares, (v) specify all sales of such shares, (vi) state that such person or entity requests exclusion from the class in this action, (vii) be signed and dated by such person or entity, and (viii) be postmarked no later than January 14, 2011 and received no later than January 21, 2011. Requests for exclusion must be mailed to the following address:
Steve W. Berman
Hagens Berman Sobol Shapiro LLP
1918 Eighth Avenue, Suite 3300
Seattle, WA 98101
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| 4. |
How do I tell the Court that I do not like the Settlement?
If you are a Class Member and you elect not to be excluded from the settlement, you can object to the settlement if you do not like any part of it, including the amendment. You can state the reasons why you think the Court should not approve it. The Court will consider your views. To object, you must send a letter saying that you object to the settlement in In re Charles Schwab Corporation Securities Litigation, Case No. C 08-01510 WHA. You must include your name, address, telephone number, your signature, the number and type of Schwab YieldPlus Fund shares held on September 1, 2006 and any additional Schwab YieldPlus Fund shares acquired between May 31, 2006, and March 17, 2008, through purchase or a dividend reinvestment, and the reasons you object. Any objection must be post-marked no later than January 14, 2011 and received no later than January 21, 2011, and sent to the following:
Court:
Clerk of the Court
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
United States Courthouse
450 Golden Gate Avenue
San Francisco, CA 94102
| Counsel for Lead Plaintiff: |
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Counsel for Defendants: |
| Steve W. Berman |
|
Faith E. Gay |
| Hagens Berman Sobol Shapiro LLP |
|
Quinn Emanuel Urquhart & Sullivan, LLP |
| 1918 Eighth Avenue, Suite 3300 |
|
51 Madison Avenue, 22nd Floor |
| Seattle, WA 98101 |
|
New York, New York 10010 |
You can object only if you are a member of the class and have not requested to be excluded.
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| 5. |
What if I do nothing?
If you do nothing, and if certain conditions that are listed in a publicly-filed Stipulation of Settlement and amendments between the Lead Plaintiffs and the Defendants are met, the Settlement Administrator will calculate your share of the settlement and send you a check of that amount, and you won't be able to start or continue a lawsuit of any kind, including an arbitration, or be part of any other lawsuit or arbitration against the Defendants about the Released Claims, which are described in the Stipulation of Settlement.
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| 6. |
How do I get more information about the Supplemental Notice?
You can contact the Settlement Administrator by phone at 1-888-955-2703, by email at classact@gilardi.com, or visit the website at www.gilardi.com.
PLEASE DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE.
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