Charles Schwab Charity Donor Action Met With Skepticism by Judge

A donor who hit Charles Schwab & Co. with a proposed class action for allegedly mismanaging a $15 billion charitable fund faced skepticism from a federal judge in California on Thursday during a hearing on a motion to dismiss the case.

Schwab Charitable Fund account holder Philip Pinkert sued in October 2020, accusing Schwab defendants of engaging in self-dealing by steering money earmarked for charitable donations into poorly performing mutual funds that pay high fees to Schwab.

The company sought to dismiss the suit in January, saying charitable customers no longer own their donations and thus lack standing to challenge ...