DES MOINES—Iowa Attorney General Brenna Bird announced today her office has filed an objection to the proposed settlement in a class-action lawsuit in which lawyers would receive $9 million while consumers, including Iowans, would receive nothing. 

A class of plaintiffs sued Charles Schwab, a retail brokerage, after it purchased TD Ameritrade. The plaintiffs claimed the purchase violated antitrust laws, asked for significant damages, and demanded that the sale be reversed. In this settlement, however, class members—that is, Schwab’s customers, which includes Iowans—receive nothing. Instead, Schwab will pay three named plaintiffs $5,050 each, pay a group of lawyers for “antitrust monitoring,” and pay the plaintiffs lawyers fees and costs of $9 million.  

“As Attorney General of Iowa, it’s my job to represent the citizens of this state, including those who have Charles Schwab accounts,” said Attorney General Bird. “In this settlement, lawyers are pocketing 9 million dollars while Iowans receive nothing but a promise that lawyers will ‘monitor’ Schwab. It’s not right or fair. Fees are supposed to be based on what lawyers win for their clients. These lawyers won nothing, so they should be paid nothing until a better deal is cut. No deal is better than this deal.”  

Attorney General Bird recently won a victory in a similar lawsuit when she fought against a settlement paying less than $1 million to class members but $4 million to attorneys in Kurtz v. Kimberly-Clark. The United States Court of Appeals for the Second Circuit agreed and ordered the district court to reassess the settlement. Attorney General Bird continues to fight to ensure Iowans are paid what they are owed and that lawyers don’t get rich by selling out Iowans’ claims. 

Read the full objection here.

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For More Information:

Jen Green 

jen.green@ag.iowa.gov