Schwab Charitable Platform Beats Suit Over Donor Advised Funds

Charles Schwab & Co. and its $15 billion charitable investing platform defeated a proposed class action claiming they steer money earmarked for charity into high-fee proprietary mutual funds, after a California federal judge determined that the donor clients lack standing.

Philip Pinkert relinquished control over his donations and therefore doesn’t have standing to challenge how this money is managed, Magistrate Judge Laurel Beeler of the U.S. District Court for the Northern District of California ruled Thursday. Beeler dismissed the case but gave Pinkert three weeks to file an amended complaint.

“The plaintiff lacks Article III standing because—as the statutory framework ...