Robo-Advisor, Charles Schwab Investment Advisory, Faces Proposed Class Action Lawsuit

A proposed class action was filed on behalf of a group of investors against the robo-advisor Charles Schwab Investment Advisory, a subsidiary of Charles Schwab Corp. The lawsuit alleges that the subsidiary made cash sweeps to Schwab which caused investors to lose out on portfolio growth. The complaint states these practices go back to 2015 and further alleges that Schwab derives a large percentage of their revenue from net interest margin on cash sweeps into Charles Schwab Bank. The cases was filed in the U.S. District Court in Northern California.

This blog is intended to provide information to the general public and to practitioners about developments that may impact Oregon class actions.

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Steve Larson

An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, environmental clean-up litigation, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve’s clients value his creative approach to resolving complex litigation matters.


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The information contained in this blog does not constitute legal advice, and does not create an attorney-client relationship. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this blog.