Schwab Lawsuit: Every Charles Schwab Class Action and Settlement, Explained
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Charles Schwab is back in the headlines after losing two FINRA arbitrations in September 2026 — one for $4.5 million — while millions of customers still hold a 2025 settlement notice that pays them nothing. Below is each case separately: what it claims, where it stands as of September 30, 2026, and whether a customer gets money. The short answer: none of these cases has an open claim form right now.
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Reviewed by Leonard Goldberg, Editor · Last updated
What Each Case Alleges
Robo-adviser cash (SEC, settled). The SEC found that from March 2015 through November 2018, Schwab Intelligent Portfolios told clients its cash allocation came from a “disciplined portfolio construction methodology” while advertising no advisory or hidden fees. According to the SEC, Schwab swept that cash to its affiliate bank, lent it out and kept the interest spread — a cash drag clients were never told about. Schwab's subsidiaries settled on June 13, 2022 without admitting or denying the findings.
Sweep cash (proposed class action). The lawsuit alleges that Schwab's cash sweep program, presented as an interest-paying place for idle cash with FDIC insurance, was designed so that Schwab and its affiliated banks keep the “vast majority” of what that cash earns. The plaintiffs plead breach of fiduciary duty, gross negligence, unjust enrichment and California's Unfair Competition Law. Schwab's response: “Allegations aren't facts.”
TD Ameritrade merger — antitrust. Customers alleged that Schwab's acquisition of TD Ameritrade violated Section 7 of the Clayton Act by creating an anticompetitive market for executing retail customer orders.
TD Ameritrade merger — stockholders. Former TD Ameritrade stockholders alleged that the October 6, 2020 merger was tainted by fiduciary breaches tied to an amended insured deposit account agreement with TD Bank, and that Schwab aided and abetted them.
Individual disputes. In September 2026 FINRA arbitration panels ruled against Schwab twice: once over structured products and leveraged ETFs held by clients who worked with an independent advisor, once over wire transfers from an elderly client's account to a crypto platform. Schwab says the larger decision was “legally wrong”.
Case Details
SEC robo-adviser order: In the Matter of Charles Schwab & Co., Inc., Charles Schwab Investment Advisory, Inc. and Schwab Wealth Investment Advisory, Inc., Administrative Proceeding File No. 3-20897 (SEC press release 2022-104).
Sweep cash: Loughran v. The Charles Schwab Corporation, No. 2:24-cv-07344, U.S. District Court for the Central District of California, filed in 2024. Citywire reported on December 9, 2024 that Schwab was sued over its “Cash Features” sweep program; we could not verify the court or the status.
Antitrust: Corrente v. The Charles Schwab Corporation, U.S. District Court for the Eastern District of Texas (Sherman), filed June 6, 2022.
Stockholders: Hawkes v. The Toronto-Dominion Bank (Ameritrade Merger Litigation), C.A. No. 2020-0360-PAF, Delaware Court of Chancery, filed May 12, 2020.
Order routing: two older best-execution class actions lost their class status — Crago (N.D. Cal., filed July 13, 2016; class certification denied again on February 2, 2023) and Ford against TD Ameritrade (D. Neb., filed September 15, 2014; class certification reversed by the Eighth Circuit on September 3, 2024). What remains goes to individual arbitration.
Other matters: Linqto said on August 10, 2026 that it continues to pursue litigation against Forge and Schwab on behalf of more than 13,000 Linqto customers. Schwab subsidiaries also settled the SEC's industry-wide inquiry into off-channel messaging, finalized on January 13, 2025, for an amount Schwab calls immaterial.
Status: No Open Claim Form in Any Schwab Case
Antitrust (Corrente) — settled, no cash, on appeal. The court granted final approval on November 24, 2025. Customers get no money: Schwab commits to non-monetary undertakings (an antitrust compliance program on price improvement and order-routing transparency, per Newsweek) and pays the plaintiffs' lawyers. Objectors appealed to the Fifth Circuit, and Schwab's quarterly report filed August 7, 2026 still describes that appeal. No damages claims were released.
Stockholders (Hawkes) — paying out. The $31.5 million settlement was approved after a September 21, 2022 hearing. Distributions went out on January 12, 2024, January 13, 2025 and June 30, 2026, with more on a rolling basis while net funds remain.
SEC robo-adviser Fair Fund — paid through Schwab. The order made Schwab calculate and pay each affected Schwab Intelligent Portfolios investor under SEC staff review; Barron's reported in January 2023 that settlement checks were going out.
Sweep cash — no settlement. We are not aware of a settlement, a certified class or a claim process in the sweep litigation, and Schwab's August 2026 quarterly report does not list it among its significant matters.
FINRA awards — individual only. The September 2026 arbitration awards pay only the claimants in those cases.
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Which Case Fits You
You traded at Schwab or TD Ameritrade since October 26, 2020. You are likely in the Corrente class — notices went to more than 25.5 million people. It pays nothing and there was no way to opt out, but it does not stop you from pursuing damages on your own.
You owned TD Ameritrade stock between November 25, 2019 and October 6, 2020. You may be in the Hawkes stockholder class. Payments go to holders who qualified under the Plan of Allocation; if you think you were missed, call the administrator at 1-888-964-2135 or see the official Ameritrade Merger Litigation site.
You used Schwab Intelligent Portfolios between March 2015 and November 2018. That is the period the SEC order covers. Under the SEC order, Schwab calculates the payments itself, subject to a de minimis threshold; there is no claim form.
You kept cash in a Schwab brokerage account. The sweep suit seeks a nationwide class of customers whose cash was swept, but no class exists until a court certifies one. There is nothing to sign up for.
You lost money on complex products bought through an outside advisor in a Schwab account. That is an individual FINRA arbitration question, not a Charles Schwab class action.
What Schwab Customers Actually Get
Hawkes: a share of a $31.5 million fund for former TD Ameritrade stockholders, paid in three distributions so far. Your amount depends on your holdings under the Plan of Allocation.
SEC Fair Fund: $187 million (about $52 million in disgorgement and interest plus a $135 million penalty). Each affected robo-adviser client was to receive Schwab Bank's net profit on the cash in their account, plus interest and a share of the remainder based on assets under management.
Sweep cash: nothing payable. No court has valued these claims. For comparison, see where the parallel sweep cases against Robinhood and J.P. Morgan stand.
Arbitration: the September 2026 awards — $4.4 million in damages plus $92,000 in costs to more than 20 clients, and close to $1.34 million to another client — belong to those claimants alone.
Charles Schwab Lawsuit Timeline
- 1
June 13, 2022 — $187 Million SEC Robo-Adviser Settlement
Three Schwab adviser subsidiaries settle SEC charges over undisclosed cash drag in Schwab Intelligent Portfolios, without admitting or denying. The money goes into a Fair Fund for affected clients.
- 2
September 21, 2022 — Stockholder Settlement Hearing
The Delaware Court of Chancery hears the $31.5 million Hawkes settlement for former TD Ameritrade stockholders and then approves it.
- 3
2024 — Sweep-Cash Class Action Filed
Loughran v. The Charles Schwab Corporation (C.D. Cal., No. 2:24-cv-07344) alleges Schwab kept most of what customers' swept cash earned and seeks a nationwide class.
- 4
November 24, 2025 — Antitrust Settlement Approved, No Cash
The Eastern District of Texas approves the Corrente settlement: conduct commitments and lawyers' fees, no payments to customers. Objectors appeal to the Fifth Circuit.
- 5
June 30, 2026 — Third Stockholder Distribution
The Hawkes administrator makes a third distribution, after January 12, 2024 and January 13, 2025.
- 6
September 2026 — Two FINRA Arbitration Losses
Panels award close to $1.34 million to one client and $4.5 million in damages and costs to more than 20 clients. Schwab calls the larger decision legally wrong.
Three Schwab Scams to Watch For
Schwab's name is attached to real settlements and real headlines, which is exactly what imposters borrow:
“Schwab security” calls in a panic
In a case reported on September 3, 2026, an Oakland customer got a screaming call from someone claiming to be Schwab, warning that someone was trying to “sell” the money out of her account; minutes later $12,145 was wired out. Schwab denied reimbursement, saying a verification code had been provided to a third party; the customer says she shared nothing. Hang up and call Schwab's fraud line yourself.
Texts from the “Schwab Bank fraud department”
Forbes wrote up a 2024 text-message scam posing as Charles Schwab Bank's fraud department. Do not reply to a text like that or tap its links — open the Schwab app or schwab.com yourself, or call the fraud line.
“Release your Schwab settlement payment”
More than 25.5 million people received the Corrente notice, and it pays customers nothing — so any message offering to release your share of a Schwab antitrust settlement is fake. For the real stockholder payout, contact the administrator yourself at 1-888-964-2135 rather than a number in an unsolicited message.
Schwab Lawsuit — Questions People Actually Ask
Is there a Charles Schwab class action I can file a claim in right now?
Not in any of the cases on this page as of September 30, 2026. The antitrust settlement pays customers nothing, the stockholder settlement is already distributing to qualified holders, the SEC fund is distributed by Schwab itself under the SEC order, with no claim form, and the sweep-cash case has no settlement. For settlements taking claims now, see open class action settlements.
Why did I get a Schwab settlement notice if there is no money?
That was almost certainly the Corrente antitrust settlement over the TD Ameritrade acquisition. Notices went to more than 25.5 million people. Customers get conduct changes, not cash, and could not opt out — but no damages claims were released. The settlement was approved on November 24, 2025 and is on appeal at the Fifth Circuit.
Did Schwab Intelligent Portfolios users get money from the $187 million SEC settlement?
The SEC order created a Fair Fund and required Schwab to pay each affected investor Schwab Bank's net profit on the cash in their account plus a proportional share of the rest, subject to a de minimis threshold — no claim form. Barron's reported on January 11, 2023 that Schwab was sending settlement checks. A separate private suit over the same robo cash sweeps was dismissed in 2022, AdvisorHub reported.
What is the Schwab sweep cash lawsuit?
Loughran v. The Charles Schwab Corporation (C.D. Cal., No. 2:24-cv-07344) alleges that Schwab's affiliated banks kept the “vast majority” of what customers' swept cash earned. It is a proposed class action, not a settlement, and nothing is payable. Similar sweep cases against Robinhood and J.P. Morgan show how these claims tend to move.
I owned TD Ameritrade stock in 2020. Am I owed money?
Possibly. The $31.5 million Hawkes settlement covers record and beneficial holders of Ameritrade common stock from November 25, 2019 through October 6, 2020. Distributions went out on January 12, 2024, January 13, 2025 and June 30, 2026. Questions go to the administrator at 1-888-964-2135.
What were the September 2026 FINRA awards against Schwab?
Per InvestmentNews, a FINRA panel ordered Schwab to pay more than 20 clients, including schoolteachers, $4.5 million in damages and costs over structured products and leveraged ETFs in their accounts; they had sued Schwab and TD Ameritrade in 2024. Earlier that month another panel awarded a client close to $1.34 million over wire transfers to a crypto platform. Schwab says it was only the custodian and that the larger decision was legally wrong. Awards bind only those parties.
Was my data in the TD Ameritrade MOVEit breach?
In 2023 a vulnerability in the MOVEit file-transfer software exposed customer data on TD Ameritrade's MOVEit server; Schwab estimated that about 0.5% of Ameritrade clients may have been affected, and affected customers were to be notified directly. Class actions naming Schwab and TD Ameritrade followed in August 2023. Other MOVEit settlements, such as EY and Bank of America, pay only their own class.
Someone called saying they are from Schwab security. What should I do?
Hang up and call Schwab yourself at 877-862-6352 (from abroad +1-602-355-7300), the number on its SchwabSafe page. Do not read out a verification code or approve a wire while someone is on the line; in the case reported in September 2026, Schwab refused reimbursement because a code had gone to a third party. Report unauthorized activity to Schwab and the credit bureaus right away.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.