Welcome to the website for the administration of the Securities and Exchange Commission v. Charles Schwab Investment Mgmt, et al. enforcement action, Case No. CV-11-0136 WHA (the “Action”). This website has been established to provide general information related to the Action, the resulting Plan of Distribution and related administration. The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Distribution Plan.

Background of the Litigation

On January 11, 2011, the Securities and Exchange Commission (the “Commission”) commenced an Action against Charles Schwab Investment Management (“CSIM”), Charles Schwab & Co. and Schwab Investments (the “Defendants “) alleging they made misleading statements regarding the Schwab YieldPlus Fund and failed to inform investors of the risk of investing in the fund. CSIM and Schwab Investments also deviated from the YieldPlus and Total Bond Funds’ concentration policies of not investing more than 25% of the funds’ assets in any one industry when they invested more than 25% of each fund’s assets in non-agency mortgage-backed securities.

A settlement was reached and, without admitting or denying the Commission’s allegations, CSIM and Charles Schwab & Co. agreed to pay disgorgement, prejudgment interest and penalties totaling $118,944,996. The Net Available funds will be distributed to Potentially Harmed Investors. A total of $110,000,000 is available for distribution to the Harmed Investors in this Action.

You can read further information on the background of this case, including the Complaint, by
visiting the Securities and Exchange Commission website at
www.sec.gov/litigation/litreleases/2011/lr21806.htm.

Harmed Investors

Harmed Investors are defined as individuals or entities who:

• held shares of the Schwab YieldPlus Fund as of February 28, 2006, and/or purchased or acquired shares of the Schwab YieldPlus Fund between March 1, 2006 and March 31, 2008, inclusive, and/or
• held shares of the Schwab Total Bond Fund as of September 29, 2006, and/or purchased or acquired shares of the Schwab Total Bond Fund between September 30, 2006 and March 31, 2008, inclusive.

How to Participate

CS&Co. and other brokers who had clients invested in the funds during the relevant periods provided the Distribution Agent with information about their customers’ investments in YieldPlus and Total Bond. Based on this information, certain investors were separately mailed a Record of Fund Transaction Form. The form will outline the investor’s transactions in the YieldPlus and/or Total Bond Funds and losses as calculated according to the Distribution Plan. When only Potentially Harmed Investor Name and Address information was provided, a Generic Proof of Claim Form was mailed. Mailing of the Notice and Record of Fund Transaction Forms and Generic Proof of Claim Forms commenced on April 23, 2012. If you received a Record of Fund Transaction Form please follow the instructions provided on the form. If you did not receive a Record of Fund Transaction Form and have eligible transactions, please contact the distribution agent via email or phone to request a generic proof of claim form. All generic proof of claim forms or Record of Fund Transaction Dispute Forms must be submitted to the Distribution Agent no later than June 29, 2012.

Please visit our Frequently Asked Questions link at the top of the page for additional information.

Current Case Status:
On April 23, 2012 Mailing of Notice and Record of Fund Transaction Forms Commenced

---