Schwab Must Face Suit Seeking to Scuttle TD Ameritrade Deal (1)

Charles Schwab Corp. lost its bid to end antitrust litigation seeking to unwind its $26 billion acquisition of TD Ameritrade over claims that the transaction slashed rebates and discounts for retail investors.

Judge Amos L. Mazzant let the case move forward, saying it’s plausible the merger worsened consolidation within an already tight-knit financial sector, curtailing competition among brokers that kept trading costs in check through widespread “price improvement” for ordinary traders.

“Allegations of this nature, which indicate that a transaction has resulted in increased market concentration, are sufficient,” he wrote. “Whether divestiture or another form of injunctive relief is appropriate ...