A recent Law.com story, “Schwab Settlement to Generate $20 Million Fee for Hagens Berman” reports that U.S. District Judge William Alsup has given preliminary approval to two deals that would furnish $235 million to class members in a class action securities fraud case against Charles Schwab.  Of that $235 million, Hagens Berman will be awarded about $20 million in attorney fees: 8 percent of the $200 million set aside for federal claims, and 11 percent of the $35 million to resolve state law claims.

Led by partners Steven Berman and Reed Kathrein, the plaintiffs successfully battled Schwab’s outside counsel Morrison & Foerster over the investment company’s so-called YieldPlus plan.  Plaintiffs say Schwab violated securities law by telling investors it would only put up to 25 percent of the assets in its YeildPlus fund in any one industry.  But Schwab allegedly changed the rules midstream and concentrated more than 45 percent in mortgage-backed securities. The SEC filed briefs supporting the plaintiffs, and the company quickly agreed to settle after Alsup recently issued a series of summary judgment rulings that went against them.