A California federal judge dismissed a stockholder’s attempt at getting Charles Schwab executives to repay the company’s $187 million fine over its robo-investor program, saying the shareholder hadn’t shown the executives were aware the program was misleadingly marketed as no-fee.
U.S. District Judge Rita Lin of the Northern District of California found that despite amending the case twice, the shareholder—Reynolds Family Revocable Trust—hadn’t sufficiently alleged that Charles Schwab directors were aware that a robo-adviser program was crafted to consistently generate revenue for the company, as if like a fee.